HVAC Financing Cost Calculator

Estimate your monthly payments, total interest paid, and the true cost of financing a new HVAC system over the loan term.

Formula

Loan Principal (P)

P = System Cost − Down Payment

Monthly Payment (M) — Standard Amortising Loan

M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ − 1]

  r = Annual Interest Rate ÷ 12  (monthly rate)
  n = Loan Term in months

Zero-Interest Special Case (APR = 0%)

M = P ÷ n

Total of All Payments

Total Payments = M × n

Total Interest Paid

Total Interest = Total Payments − P

True Total Cost of Ownership

True Cost = Total Payments + Down Payment + Origination Fee − Rebate

Assumptions & References

  • Origination fees are treated as an upfront cost and are not rolled into the financed principal; they are added to the true cost of ownership separately.

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