Restaurant Equipment Affordability Calculator — Owner‑Operators & Small Chains

If this monthly payment stays under 40–43% of your gross restaurant revenue, you’re likely within a typical approval window — the exact APR will still hinge on your credit profile and collateral.

What changes your rate / answer

• Credit score. Scores ≥650 often qualify for the low‑end 8%‑10% APR; each 50‑point dip can add 0.25‑0.5% to the rate.
• Loan term. Extending from 48 to 84 months reduces the monthly payment but raises total interest paid.
• Down payment & collateral. Putting 20‑25% down or securing the loan with existing kitchen equipment can shave 1‑3 percentage points off the APR.
• Time in business. Lenders require at least 6 months of operation for equipment financing; newer ventures may face higher rates.
• Debt‑service‑to‑revenue ratio. If your overall debt service exceeds 43% of revenue, lenders typically increase the rate or require a larger down payment.

How to use this

• Enter the total equipment cost. Include purchase price, delivery, installation, and any ancillary upgrades.
• Select an expected APR. Start with the default (10%). Adjust up or down based on your credit score and collateral.
• Choose a loan term in months. Shorter terms mean higher payments but lower total cost; longer terms spread the bill but increase interest.
• Read the monthly payment result. Compare it to your average monthly gross revenue to ensure it stays below the 40‑43% debt‑service threshold.
• Tweak inputs and re‑run. Lower the loan amount, extend the term, increase the down payment, or improve your credit score to reach a workable figure.

For a deeper dive into how cash flow impacts affordability, see our Equipment Payment Calculator and learn more about the financing landscape for independent operators on the Restaurant Equipment Financing home page.

Bottom line

The calculator shows the monthly commitment you’d be signing up for; approval still depends on credit, revenue, and collateral. Use the result as a benchmark when comparing equipment loans, leases, or lease‑to‑own offers.