Free equipment decision tool

Buy vs. Lease Equipment Calculator

Compare the true financial cost of buying versus leasing equipment and see when one option becomes cheaper than the other.

Simple calculator

Enter the equipment terms

Updates live

Buy option

Equipment purchase price

Down payment

Loan interest rate

Loan term

years

Lease option

Monthly lease payment

Lease term

months

Lease upfront payment

Lease-end purchase option

Enter $0 if you expect to return the equipment.

Ownership assumptions

Expected value after comparison period

Comparison period

years

Simple comparisonBuying cost includes down payment, loan payments and remaining loan balance, less the equipment's estimated resale value. Leasing includes upfront payments, lease payments and any selected buyout.

Decision result

Lowest-cost option

Lower-cost option BUY Estimated savings over the comparison period $9,356

Estimated net cost to buy$69,644

Estimated lease cost$79,000

Monthly loan payment$1,403

Total loan interest$14,180

Buy cash paid$99,180

Lease cash paid$114,300

Estimated break-evenMonth 38

Resale value retained$30,000

OfficeQ readout

Buying is projected to cost less over the selected comparison period once resale value is considered.

Cost crossover

Buy vs. lease by year

Cumulative estimated net cost

Year	Buy cash paid	Estimated owned value	Net buy cost	Lease cash paid	Lower-cost option

Advanced calculator

Model full ownership economics

Updates live

Purchase & financing

Purchase price

Down payment

Closing / setup fees

Loan interest rate

Loan term

years

Balloon payment

Lease terms

Monthly lease payment

Lease term

months

Upfront lease payment

Lease origination / doc fees

End-of-lease buyout

Expected excess-use / return fees

Operating costs

Annual maintenance if bought

Annual maintenance if leased

Annual insurance difference

Positive means buying costs more per year.

Residual value & economic assumptions

Expected resale value

Comparison period

years

Discount rate / cost of capital

Estimated effective tax rate

Annual buy tax deduction

Optional planning estimate. Enter $0 to ignore. Lease payments deductible

Planning assumption only.

Advanced modelCompares after-tax present value of all modeled cash flows. Tax treatment varies by asset, entity, jurisdiction and lease structure, so deduction assumptions are fully editable.

Year-by-year economics

Cumulative cost comparison

After-tax present-value estimate

Year	Buy PV cost	Lease PV cost	Difference	Lower-cost option

Sensitivity

Decision under different resale values

Other assumptions unchanged

Resale scenario	Resale value	Buy PV cost	Lease PV cost	Savings	Winner

Reading the result

The lowest monthly payment is not always the lowest-cost choice.

Buying may require more cash upfront, but ownership can create residual value at the end of the comparison period. Leasing can preserve cash and transfer some maintenance or obsolescence risk, but long lease terms and buyouts can increase total cost.

The Advanced model discounts future cash flows and lets you add maintenance, fees and editable tax-effect assumptions. Use your accountant or tax adviser for actual tax treatment.

Buy advantageOwnership, resale value and potentially lower long-term cost.

Lease advantageLower upfront cash need, flexibility and possible maintenance coverage.

Break-evenThe point where cumulative economic cost of one option becomes lower than the other.