Ferncroft Business Loans, a small-business funding service in Sheboygan, Wisconsin, provides this CNC machine loan calculator for machine shops and fabricators. Enter a price, down payment, rate and term to estimate the monthly payment and the total cost including the down payment. It does arithmetic only; it does not quote rates, approve anything or model leases, fees or taxes.
What the Calculator Computes
- Monthly payment: the level payment that repays the financed amount (price minus down payment) over the term at the rate you enter
- Total cost: all monthly payments plus the down payment
That is all it does. It does not know any partner's rate, and it does not include fees, taxes, insurance, rigging or installation.
CNC Machine Loan Interest Rate: What to Enter
We do not publish rates; partners set them for each file. To use the calculator, enter a rate from a quote you have, or try a few different rates to see how much the payment moves. A rate of zero shows the bare principal per month, which is a useful floor.
A Worked Example by Hand
Illustrative only; round numbers for easy arithmetic, not a quote or a typical offer. A used CNC lathe costs $85,000 and the shop puts down $8,500, leaving $76,500 financed.
- At a rate of zero over 60 months: $76,500 divided by 60 is $1,275.00 a month. Total cost: $76,500 plus the $8,500 down payment, $85,000.
- At a rate of 10 percent a year over 60 months: about $1,625.40 a month. Total of payments about $97,523.94; total cost with the down payment about $106,023.94.
- At the same 10 percent over 84 months: about $1,269.99 a month, but a total cost of about $115,179.21.
The longer term lowers the payment and raises the total. Matching the term to the machine's remaining useful life keeps you from paying for a lathe after it is retired.
What the Calculator Does Not Do
- It does not model leases, residual values or end-of-lease buyouts.
- It does not include origination or documentation fees.
- It does not include sales tax, freight, rigging or installation.
- It does not tell you whether a partner will approve a request.
For a lease, add up the lease payments and the buyout by hand and compare that total with the loan's total cost from the calculator.
Using the Result
Compare the monthly payment with the gross margin the machine's added capacity is expected to produce. If the payment takes most of it, look at a longer term, a larger down payment or a less expensive machine. Our post on financing used CNC machines covers the inspection and paperwork side, and machine shop and fabrication funding covers the rest of a shop's funding needs. When you are ready, request options or read about equipment financing. Other tools are on the resources page.
By Ferncroft Business Loans · Updated