Wrenmoor Funding, a small-business funding service in Chattanooga, TN, provides this equipment calculator for Hamilton County, TN contractors. It estimates a monthly payment and total cost, including the down payment, from four inputs. It is an arithmetic aid, not an offer; funding partners set actual rates and terms.
The Four Inputs
- Price: the equipment's quoted price
- Down payment: what you pay up front
- Rate: an annual rate you want to test
- Term: how many months the payments run
The result shows the monthly payment and the total cost including the down payment. That is all the tool computes.
Using It for a Construction Business Loan Decision
Try two or three terms for the same machine. A longer term lowers the payment and raises the total cost; a larger down payment does the reverse. Then set the payment against the work the machine will do: billable hours for a skid steer, jobs per month for a trailer-mounted rig.
Weekly payments, lease buyouts and tax effects are not computed here. Those need a pencil or your accountant.
A Worked Example (Illustrative Only)
A sample contractor tests a used compact excavator quoted at $68,000 with $8,000 down over 48 months at a test rate the owner chooses. The calculator shows the payment and total cost; the owner then compares the payment with the extra digging work the machine replaces from rentals. Numbers are invented and the rate is the owner's own test input, not a market figure.
Numbers to Gather Before You Start
- The written price from the dealer or seller, including delivery
- The down payment you could actually make without draining payroll cash
- A sample rate to test with; any figure you enter is your assumption, not an offer
- A term that matches how long the machine will earn on your jobs
What comes back is a monthly payment and an all-in cost that counts the down payment. Everything else is a by-hand step.
Running Costs to Add by Hand
Insurance, transport to the site, maintenance, wear parts and operator time are not in the result. Add them by hand to the monthly payment before deciding whether a machine pays for itself on your bids. For the wider funding picture, see the contractor page and the equipment financing page linked above.
Used Equipment and How to Finance Construction Equipment
For used machines, expect a shorter term and questions about hours and condition. The equipment financing page covers used equipment, leases and $1 buyouts. Trade notes are on the contractor and builder page and the plumbing and HVAC page. Further Wrenmoor guides live on the resources page.
By Wrenmoor Funding · Updated
