Price 2026 monthly payment on a restaurant equipment loan, lease, SBA 7(a), or line of credit by buildout cost, term, and credit tier — then get matched with 3 equipment finance brokers.
Equipment Budget
Financing Product
Term & Credit
Location
Fill in the details and click Calculate
Fill in the details and click Calculate
Frequently Asked Questions
Q
How much does restaurant equipment financing cost per month in 2026?
Monthly payments typically run $400-$3,500 for principal and interest on $30,000-$150,000 commercial kitchen buildouts over 3-7 year terms. A $50,000 equipment loan at 9% APR over 5 years runs about $1,038/month. An SBA 7(a) at $100,000 and 10% APR over 10 years runs about $1,321/month. Leases on the same equipment typically monthly run 15-25% less than loans but you do not own the equipment at the end.
Food truck $20-45K buildout: $350-$900/mo over 5 years
Quick-service $50-100K kitchen: $700-$2,000/mo
Full-service $100-150K buildout: $1,300-$3,000/mo
Complete $150-250K kitchen: $2,400-$5,500/mo
SBA 7(a) cuts monthly ~20-30% vs equipment loan via longer 10-year term
Equipment Cost
Loan 5yr @ 10%
Lease 5yr @ 11%
SBA 7(a) 10yr @ 10.5%
$30,000
$637/mo
$523/mo
$405/mo
$50,000
$1,062/mo
$870/mo
$674/mo
$100,000
$2,125/mo
$1,741/mo
$1,349/mo
$150,000
$3,187/mo
$2,612/mo
$2,023/mo
$250,000
$5,312/mo
$4,354/mo
$3,372/mo
Q
Equipment loan vs lease vs SBA 7(a) — which is cheapest for restaurants?
Equipment leases have the lowest monthly payment (15-25% below a loan on the same amount) but leave you without ownership at the end and often carry a FMV or $1 buyout fee. SBA 7(a) has the lowest APR (9.75-12% in 2026 vs 10-18% for equipment loans) and the longest term (up to 10 years for kitchen equipment) but requires 30-90 day funding and credit 680+. Equipment loans sit in the middle: 24-72 hour funding, 3-7 year terms, you own the equipment from day one. Most first-time restaurant owners combine SBA 7(a) for major kitchen equipment and vendor financing for POS.
Lease: lowest monthly, no ownership, $1 or FMV buyout at end
Equipment loan: 3-7 year terms, 10-18% APR, fast funding (24-72 hr)
SBA 7(a): lowest APR 9.75-12%, 10-year term, needs 680+ credit, 30-90 day close
Line of credit: 12-25% APR revolving, best for seasonal working capital, not buildout
Common combo: SBA 7(a) for kitchen + vendor financing for POS
Q
What APR should I expect on restaurant equipment financing by credit score?
Excellent credit (720+) qualifies for 6-10% APR on equipment loans and 9.75-12% on SBA 7(a). Good credit (680-719) typically sees 9-13% on loans and 10-14% on leases, and SBA 7(a) remains possible. Fair credit (620-679) faces 13-20% on loans, and SBA approval becomes rare. Below 620 usually means alternative lenders only at 20-30% APR. Most equipment lenders require minimum 620-680 personal credit plus 6+ months in business and $8,000-$10,000 monthly revenue.
Min revenue $8K-$10K/mo + 6 months in business for most lenders
Q
How long can I finance restaurant equipment?
Equipment loans typically run 24-84 months with 60 months (5 years) the most common. SBA 7(a) can extend to 10 years on kitchen equipment with 10+ year remaining useful life. Equipment leases are typically 24-60 months with buyout at end. Lines of credit are revolving (no fixed term) but most brokers quote monthly payments based on 36-month amortization equivalent. Longer terms drop monthly payment but add 30-50% to total interest cost — a $100K loan at 10% over 10 years pays $58K in interest vs $27K over 5 years.
Equipment loans: 24-84 months (60 months most common)
SBA 7(a): up to 10 years on kitchen equipment
Equipment leases: 24-60 months + buyout
LOC: revolving, typically quoted on 36-month basis
Longer term = lower monthly, but 30-50% more total interest
Q
What restaurant equipment costs are typical for different buildout sizes?
Food truck buildouts run $20,000-$45,000 for equipment ($8-20K cooking, $3-8K refrigeration, $5-15K other). Quick-service brick-and-mortar buildouts run $50,000-$100,000 for a complete basic kitchen line. Full-service restaurants typically need $100,000-$150,000 in equipment (hood system, walk-in, line, prep, POS, furniture). Complete high-end commercial kitchens push $150,000-$250,000+. Total turnkey buildouts (with construction, millwork, lighting, bar) range $300,000-$2M+ but equipment is the largest financeable component.
Should I lease POS and tech separately from kitchen equipment?
Yes. Most restaurant finance brokers recommend buying core cooking and refrigeration (65-70% of equipment cost) via SBA 7(a) or equipment loan to build equity, and leasing POS, kitchen display systems, and technology that updates every 3-5 years. POS leasing typically runs $50-$200/month per terminal through vendors like Toast, Square, or Clover with bundled hardware and software. Bundling everything into a single SBA 7(a) over 10 years means paying for obsolete tech in year 8.
Buy core kitchen (65-70% of cost) via SBA 7(a) or loan
Lease POS, KDS, tech updated every 3-5 years
Toast/Square/Clover POS lease: $50-$200/mo per terminal
Vendor financing often bundled with POS hardware
Avoid 10-year SBA on tech that obsolesces in year 4-5
Example Calculations
1$50,000 quick-service kitchen, equipment loan, good credit (TX)
Inputs
Equipment cost$50,000
Financing typeEquipment loan
Term5 years
Credit tierGood (680-719)
Result
Typical monthly payment$1,040 – $1,150
APR range10-12%
Total interest over 5 years$13,600 – $18,400
Equipment owned at endYes
Total repaid$62,400 – $69,000
Standard 5-year equipment loan for a quick-service kitchen line. Good credit puts you in the 10-12% APR band. Equipment is collateral, no additional collateral needed. Funding typically in 24-72 hours.
SBA 7(a) at prime + 3-5% (9.75-12% in 2026). 10-year term cuts monthly payment ~35% vs 5-year equipment loan but adds significant total interest. Requires SBA-eligible lender, full documentation, and 30-90 day close.
Fair-credit lease on a food truck kitchen package. Monthly payment is lower than a fair-credit loan but buyout at end adds cost. Leases also typically skip personal collateral beyond equipment itself, which matters for newer operators.
Monthly payment = [P × (r/12)] / [1 − (1 + r/12)^(−n)] where P = principal, r = APR, n = months
Monthly payment is driven by three levers: principal (equipment cost), APR (set by financing type + credit tier), and term length in months. SBA 7(a) has the lowest APR but 30-90 day funding and needs 680+ credit. Equipment leases typically carry 1-3% APR above comparable loans but lower monthly payment via residual value. Lines of credit are revolving and usually quoted against a 36-month amortization baseline.
Where:
Principal= Equipment cost $20,000-$250,000; subtract any down payment (typically 0-20%)
Term= Loans 24-84 mo; SBA 7(a) up to 120 mo; leases 24-60 mo; LOC revolving
Credit tier adjustment= Excellent 720+ -3 to -5% APR; fair 620-679 +4 to +8% APR; below-620 +8 to +15% APR
Regional factor= Minor; national lenders price equipment financing off credit + revenue, not ZIP
Restaurant Equipment Financing in 2026: Monthly Payment, Rates, and the Right Product
1
Restaurant Equipment Financing Monthly Payment in 2026
Restaurant equipment financing in 2026 runs $400-$3,500 per month for principal and interest on typical commercial kitchen buildouts between $30,000 and $150,000. A common benchmark: a $50,000 equipment loan at 9% APR over 5 years runs about $1,038 per month, and the same $50,000 refinanced as an SBA 7(a) over 10 years at 10.5% drops to roughly $674 per month — a 35% cut to monthly cashflow in exchange for paying another $21,000 in total interest. A food-truck buildout at $30,000 over 5 years at 10% lands around $637/month, while a full-service $150,000 kitchen line at 10% over 5 years costs $3,187/month or $2,023/month stretched to 10-year SBA 7(a).
The spread is wide because four variables move the number: principal (equipment cost), APR (determined by financing type plus credit tier), term length, and fees. APR ranges from 6% (excellent credit on an equipment loan) to 30%+ (below-620 credit at alternative lenders), which on a $100,000 principal translates to a $150-$2,500 per-month swing. Credit tier is the largest APR driver — excellent (720+) saves 5-15 percentage points of APR vs below-620 on the same product, which on a $100,0005-year loan means $16,000-$48,000 of total interest difference.
The table below anchors 2026 monthly payments across three common products (equipment loan, equipment lease, SBA 7(a)) at five principal bands. Rates reflect mid-2026 averages: Wall Street Journal Prime at 6.75% (April 2026) plus 3.00-3.75% for SBA 7(a) on 10-year terms, 10% blended for equipment loans at good credit, and 11% for equipment leases at good credit. Actual quotes vary 2-5 percentage points based on lender, collateral mix, and revenue history. For the underlying amortization math, the universal loan calculator lets you input any principal, APR, and term to double-check broker quotes against the standard formula.
The common mistake operators make is anchoring on monthly payment without computing total interest cost. A 10-year SBA 7(a) looks attractive at $674/month vs $1,038/month on a 5-year loan, but pays $30,880 more in total interest. If cash flow from the first location is strong by year 3, refinancing or paying down the SBA 7(a) early captures most of the total-interest advantage of a shorter loan while keeping early-year cash flexibility — worth negotiating no-prepayment-penalty language into any SBA 7(a) contract upfront.
Sanity-check any broker quote against the standard amortization formula. A $50,000 equipment lease at 11% over 5 years should be ~$1,088/month. If a broker sends $1,250/month on paper, there are $162/month ($9,720 total) in bundled fees — ask for a fee breakdown line-by-line before signing.
2
Equipment Loan vs Lease vs SBA 7(a) vs Line of Credit
Four products dominate restaurant equipment financing in 2026, and picking the wrong one adds 20-40% to true lifetime cost. Equipment loans are the default: 3-7 year terms (5 years most common), 6-20% APR depending on credit, the equipment itself serves as collateral, and you own it day one. Funding is typically 24-72 hours for amounts under $150,000. The downside is a slightly higher APR than SBA 7(a) (usually 2-4 points) and a shorter maximum term that pushes monthly payment up on larger buildouts.
Equipment leases sit next to loans but flip the ownership structure. The leasing company owns the equipment; you pay 15-25% lower monthly but face a buyout at lease end (either $1 for a capital lease or fair market value for an operating lease, typically 10-20% of original cost). Leases are often approved 1 credit tier lower than loans (fair credit 620-679 can get leases when loans get declined), and they preserve personal collateral since the equipment is the only asset on the line. Downside: over 5-7 years you typically pay 15-30% MORE total than a loan on the same equipment once buyout is included.
SBA 7(a) is the lowest-cost product for operators who qualify. 2026 rates run 9.75-12% on loan amounts under $350,000 (Prime + 3.00 to 4.75 points; Prime at 6.75% April 2026), with maximum terms up to 10 years on kitchen equipment with 10+ year useful life. Monthly payment is the lowest of any option for the same principal because of the longer term. Requirements are stricter: 680+ personal credit, 2+ years in business (or SBA Express for newer), full documentation, and 30-90 day funding timeline. Most first-time restaurant owners pair SBA 7(a) for the core kitchen with vendor financing for POS and tech per the recipe cost calculator output to confirm gross margin supports the payment.
Business lines of credit are the worst fit for equipment purchases but get mis-sold regularly. LOCs are revolving credit at 12-25% APR (much higher than equipment loans) designed for short-term working capital — paying suppliers, covering seasonal dips, bridging 30-60 day receivables. Using a LOC to finance a $100K commercial kitchen means $1,500-$2,000/month in interest alone on a product designed to be paid down in 60-90 day cycles. Reserve LOCs for inventory and payroll bridging; use dedicated equipment products for the kitchen itself. For the broader food-business economics, see the catering service cost calculator to project revenue that must exit your new kitchen to support the equipment payment.
How Credit Tier Drives Your APR and Monthly Payment
Personal credit score is the single largest lever on restaurant equipment financing APR in 2026. Excellent credit (720+) qualifies for 6-10% equipment loan APR and 9.75-12% SBA 7(a), which on a $100,0005-year loan translates to $1,933-$2,125 per month. Good credit (680-719) sees 9-13% on equipment loans and 10.5-13% on SBA 7(a), pushing the same $100,0005-year loan to $2,076-$2,275/month. Fair credit (620-679) faces 13-20% on loans and usually SBA 7(a) declines, pushing monthly payments to $2,275-$2,649 — $340-$716 more per month than excellent credit on the same principal and term.
Below-620 credit is the edge of the market. Alternative lenders (non-bank, online-first) will approve 500-620 credit scores at 20-30% APR if the business shows $8,000-$10,000 minimum monthly revenue and 6+ months in business. A $50,000 equipment loan at 25% APR over 5 years runs $1,468/month — about $400/month more than the same loan at 10% APR. That $400/month equals $24,000 over the loan’s life, often exceeding the equipment’s actual useful-life depreciation. Operators in this band are better served by leasing at 18-28% APR (lower monthly, no long-term principal commitment) while they spend 6-12 months repairing credit for a refinance.
Three practical tactics cut APR even within a credit tier. First, co-signing by a stronger-credit business partner pulls approval into the higher tier’s rate band. Second, a 10-20% down payment signals skin-in-the-game and typically cuts APR by 1-2 percentage points on equipment loans. Third, bundling kitchen equipment with a real-estate SBA 7(a) (common for first-time restaurant owners buying building + equipment) qualifies for longer terms (up to 25 years on the real estate portion) and pulls the blended rate down. The event catering cost calculator can help project supplemental revenue that qualifies for better credit on the re-application.
Time in business and monthly revenue matter nearly as much as credit score for alternative lenders. Under 6 months in business, most equipment lenders decline regardless of credit; 6-24 months in business with $8,000-$10,000/month revenue opens alternative-lender approval at 15-25% APR; 24+ months with $15,000+/month revenue opens SBA 7(a) approval at 9.75-12% APR even at 680-710 credit. The path for first-time operators without business history is typically personal-credit-backed equipment lease at 15-20% APR for 12-18 months, then refinance into SBA 7(a) once business history is established.
A 5-point credit score improvement across tier boundaries (say 675 to 680) can cut APR by 3-4 percentage points and monthly payment by 8-12% on the same loan. Pull your credit report 90 days before applying, dispute errors, and pay down revolving balances to push into the next tier before requesting quotes.
Excellent 720+: 6-10% APR loan / 9.75-12% SBA 7(a) / best terms available
Good 680-719: 9-13% APR loan / 10.5-13% SBA 7(a) / most common tier
Restaurant equipment costs cluster in four bands that map cleanly to financing product choice. Food truck equipment runs $20,000-$45,000: cooking appliances $8,000-$20,000 (commercial griddles, fryers, small ovens), refrigeration $3,000-$8,000 (commercial fridges, freezers, prep tables with built-in refrigeration), plus $5,000-$15,000 in smallwares, POS, and installation. At this band, equipment lease or short-term equipment loan (3-5 years) is the common financing — SBA 7(a) is available but the 30-90 day wait and paperwork often outweighs the APR savings on principals under $50,000.
Quick-service buildouts cluster at $50,000-$100,000 and represent the highest-volume band for equipment financing. A basic quick-service kitchen (one cook line, walk-in, single hood, prep area, POS, 2-3 hoods zones) prices in this range. At this band, equipment loans 5-7 years (10-18% APR) become the default product, with SBA 7(a) gaining cost-advantage once principal exceeds $75,000. Monthly payments land $700-$2,000. Many quick-service operators split: equipment loan for the kitchen core ($60-75K) and separate vendor financing for POS ($50-200/mo/terminal).
Full-service buildouts run $100,000-$150,000 and almost always pencil toward SBA 7(a) given the longer term and lower rate. Equipment includes a complete cook line, multiple refrigeration units, hood system with ansul, walk-in cooler and freezer, bar equipment, POS, dining room furniture, and specialty items (dishwasher, ice machine, espresso). Monthly payments land $1,300-$3,000. A common mix: SBA 7(a) for the kitchen + hood ($100-120K) and equipment lease for bar + POS tech ($20-40K). Complete high-end buildouts push $150,000-$250,000+ and typically require bundled SBA 7(a) or 504 real estate + equipment package financing.
Total turnkey restaurant cost (including construction, millwork, plumbing, HVAC, permits, design, and pre-opening expenses) ranges $300,000-$2,000,000+, with equipment at 25-40% of the total. The non-equipment portion typically finances through SBA 504 (real estate + major capital equipment), construction loans, or owner capital. For the broader pre-opening budget math, cross-reference restaurant-specific revenue projections against your ROI timeline — most SBA 7(a) officers want to see breakeven within 18-24 months of opening to approve equipment financing at advertised rates.
Food truck: $20-45K equipment / short-term lease or 3-5 yr loan
Quick-service: $50-100K / 5-7 yr equipment loan standard
POS + tech: always separate from kitchen financing (3-5 yr vendor lease)
Walk-in cooler + hood: qualifies for SBA 7(a) 10-yr (useful life 15-20 yr)
5
Monthly Payment Breakdown by Financing Product
A typical $50,000 equipment loan at 10% APR over 5 years decomposes into principal repayment and interest at shifting ratios. In month 1, the $1,062 payment splits roughly $645 principal / $417 interest. By month 30 (midpoint), the split is $795 principal / $267 interest. By the final month, it is $1,054 principal / $8 interest. Total interest paid over the 5-year term is $13,748 on the $50,000 principal — effectively a 27% premium over the sticker price of the equipment.
The donut below visualizes the cost composition of a typical $100,0005-year equipment loan at 10% APR: principal 79%, interest 19%, fees and closing costs roughly 2% (origination fees 1-2.5%, documentation $150-$500, UCC filing $50-$150). Lease products shift this composition materially: a $100,0005-year lease at 11% with $1 buyout breaks out as roughly 70% principal-equivalent / 28% interest-equivalent / 2% fees, with the $1 buyout line appearing only at term end. SBA 7(a) carries additional fees: SBA guaranty fee 0.25-3.5% (financed into loan principal), plus ongoing service fee 0.55% annually on outstanding balance.
Monthly payment quoted by brokers often excludes three line items that add 5-15% to true monthly cost. Insurance on financed equipment is required by most lenders and runs $40-$150/month on a $100,000 package. Property tax (depending on state) can add $20-$80/month. Maintenance contracts (often bundled with commercial refrigeration and hood systems) run $100-$300/month for comprehensive coverage. Always ask brokers to itemize equipment payment / insurance / property tax / maintenance / SBA fees separately — a $1,349/month SBA 7(a) headline payment on $100K often lands at $1,500-$1,600/month all-in once insurance and ongoing SBA fees are included.
6
Red Flags and What to Ask Before Signing
Restaurant equipment financing is a high-volume commercial lending market and the scam patterns are consistent. Any lender demanding an upfront fee before approval (application fees $500-$2,000, due diligence fees, processing fees paid pre-approval) is running the classic advance-fee pattern — reputable lenders pull credit, review bank statements, and close with fees rolled into the financed amount. The Federal Trade Commission tracks this as a top-10 small-business scam category. Walk away from any lender that asks for money before presenting a term sheet.
Four diagnostic questions separate professional equipment finance brokers from resellers. First: "Who is the actual lender?" Many brokers simply resell other lenders’ paper at markup — you want the original lender’s name, state of incorporation, and NMLS or SBA participating-lender status. Second: "Is this APR or factor rate?" Factor rates (common with alt lenders) of 1.25-1.40 on a 12-month term translate to 35-60% APR — always convert to APR before comparing. Third: "What are the total fees including origination, documentation, and prepayment?" Origination 1-3% of principal is standard; anything above 5% is aggressive. Fourth: "Can you send three recent references from similar-size restaurant buildouts in the last 12 months?"
Compare at least 3 written term sheets on identical specifications (principal, term, financing product). A quote 3+ percentage points APR below the pack usually hides fees in the monthly payment or carries balloon payments not disclosed in the headline rate. A quote 3+ points APR above the pack rarely reflects true credit-adjusted pricing; it is often a broker padding the rate for extra commission. Always verify the lender’s stated rate against 2026 published SBA 7(a) maximums (Prime + 3.00 to 4.75 = 9.75-11.5% depending on term and size as of April 2026) and Nav/Lendio rate published bands for non-SBA products. For POS and kitchen tech financing rules, the catering service cost calculator FAQ section lists the vendor-financing patterns to require on the POS portion separately.
Restaurant equipment financing scams are a top-10 FTC small-business complaint category. The pattern is almost always an advance application fee ($500-$2,000) demanded before credit is pulled or terms are offered. Reputable lenders roll all fees into the financed principal and disclose them on the term sheet before you sign — never before.
Upfront application fee $500+ before approval = scam signal, walk away
Factor rate (1.25-1.40) = typically 35-60% APR in disguise
Origination fee >5% of principal = padded broker markup
Balloon payment not in headline APR = re-read contract, demand amortization table
Prepayment penalty >12 months interest = negotiate out or pick another lender
Ask for lender’s SBA participating-lender or NMLS ID
3 written term sheets on identical specs — compare APR, total interest, fees
SBA 7(a) published max APR: Prime + 3.00-4.75 (9.75-11.5% April 2026)
This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.