The calculator on this page computes an equipment payment, total interest and total cost from price, down payment, rate and term. It does not compute a deduction or a tax saving; the owner's tax preparer decides how any deduction applies.
Section 179 Calculation Example for Tooele, UT Manufacturers Planning Long Receivables
Section 179 is the part of the federal tax code under which a business can elect to deduct the cost of qualifying equipment up front rather than over several years. The owner's tax preparer decides how any deduction applies to a given purchase; this page works out the financing side only.
Illustration only, invented figures: a plant finances an $85,000 machine over 60 months at an annual rate of 9%. Each payment is $1,764.46, and the first twelve of them total $21,173.52, the number to hold against the plant's monthly cash before the purchase goes ahead.
| Item | Figure |
|---|---|
| Equipment price | $85,000 |
| Term (months) and rate (annual %) | 60 months at 9% |
| Monthly payment | $1,764.46 |
| Payments in year one | $21,173.52 |
For a plant whose customers pay on 60-day terms, timing matters as much as the totals: the first payment can come due within weeks of delivery, while the money for the parts the new machine turns out may take two months to arrive.
Section 179 Deduction Calculator: Inputs Restaurant Owners Already Have
The calculator on this page takes four inputs, all of which a restaurant owner can pull from paperwork already on the desk:
- Equipment price, from the dealer or vendor quote
- Down payment, if any (optional)
- Rate (annual %), from a partner's offer or a figure to test
- Term in months, from the offer
Out come three figures: an estimated monthly payment, the total interest and a total cost that counts the down payment. Nothing you type is sent anywhere, and the result is arithmetic only, not an offer.
An offer written as a lease payment with a buyout, rather than as a rate and term, will not fit those inputs. In that case add up the lease payments and the buyout from the offer itself, then compare that total with the calculator's total cost for a loan on the same range or dish machine. The lower number is not automatically the better deal, but it is the right starting point.
Reading the Section 179 Deduction Calculator Result Before Food Orders
A kitchen buying a range and a reach-in cooler still has to pay its food suppliers every week. Before signing, set the monthly payment beside the weekly food bill and ask whether both fit in a slow week, not just an average one.
Illustration only, invented figures: $42,000 of kitchen equipment with $6,000 down leaves $36,000 to finance; over 48 months at 10% that is $913.05 a month. The food orders and that payment both come due month after month, whatever the tax preparer later concludes about the purchase.
Reading the Section 179 Deduction Calculator Result Before a Dining-Room Furniture Purchase
Furniture, booths, lighting fixtures and point-of-sale stations for a dining room are equipment and fixtures, which equipment financing and the calculator can cover. Walls, floors and other work on the building itself are property work and outside this site, and their tax treatment is also a question for the tax preparer.
Enter the fixture quote as the price, run the payment at two or three terms, and take the results to both the tax preparer and a funding partner. The equipment financing page explains how partners review the quote, and the funding request form takes the amount range once the purchase is settled.
By Laurelmont Commercial Capital ยท Updated
