Section 179 Deduction Calculator
Calculate your potential savings before year-end. Enter your equipment cost below.
Section 179 Calculator
How to Use the Section 179 Deduction Calculator
The Capital Infusion Section 179 calculator shows you the complete financial picture of your equipment purchase—from your total tax deductions to your actual out-of-pocket cost. Adjust the numbers to find the optimal financing strategy that maximizes your tax savings while keeping your cash flow strong.
Step 1: Enter your information
This is the information you'll need to enter in order to gain a clear picture of a repayment schedule.
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Equipment purchase price: This is the complete cost of the equipment or machinery you're purchasing for your business operations. Enter the full amount shown on your quote or invoice—the total price before applying any down payment, before taxes, and before financing costs.
Step 2: Calculate your savings
Once you press “calculate tax savings,” the tool will generate the following results (You can modify the input to test different loan scenarios).
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First year write-off: This is the immediate tax deduction you can claim under Section 179 for equipment purchased and placed into service during the current tax year. For 2025, you can deduct up to $2,500,000 of qualifying equipment costs directly from your taxable income in year one, rather than depreciating it over multiple years.
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Bonus depreciation: This is an additional first-year tax deduction available on top of your Section 179 write-off. For 2025, bonus depreciation allows you to deduct 100% of the remaining equipment cost after applying Section 179. While Section 179 has dollar limits, bonus depreciation can be applied to the excess amount, giving you even more tax relief in year one.
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Total first year deduction: This is the combined total of your Section 179 deduction and bonus depreciation—the complete amount you can write off on your taxes in the first year. This shows the full tax advantage available to you before considering your tax bracket.
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Total tax savings: This is the actual dollar amount you'll save on your tax bill based on your total first-year deduction and your business's tax bracket.
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Net cost of equipment: This is what you actually pay for the equipment after subtracting your total tax savings from the original purchase price. It represents the true out-of-pocket cost of your investment.
What Equipment Qualifies for Section 179
Section 179 applies to a wide range of tangible business property and equipment that you purchase or finance for use in your business operations. To help businesses across virtually every industry, the IRS has made the qualifying equipment list extensive and flexible.
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Manufacturing equipment and machinery
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Commercial vehicles
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Computers and office technology
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Software
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Medical devices
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Restaurant appliances
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Office furniture and equipment
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Renewable energy equipment
In order to qualify, the equipment must be purchased and placed into service before the year ends. This means the equipment needs to be delivered, installed, and ready for use in your business operations by December 31st of the tax year you're claiming the deduction. Simply ordering the equipment or paying a deposit isn't enough—it must be actively in use.
Here’s what other business owners are saying...
Our clients say
1. Look at how much money your business makes, what it spends, and what costs are coming up soon. Knowing these things helps you pick the right type of loan and makes it easier to get approved.
2. Choose between working capital, equipment financing, or a true revolving credit line. Capital Infusion offers loans directly and through partner companies, with easy paperwork, quick approvals, and competitive rates.
3. Complete a simple 1-page application and submit four months of business bank statements. This helps you get fast approvals, usually within 24-48 hours, as well as customized help for your business.
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