Equipment Lease vs Buy Calculator
Capital Decision Toolkit

Equipment Lease vs. Buy

Compare the long-term impacts of leasing equipment versus buying it outright.

📋
Lease Parameters
Operating or finance lease terms
Equipment Value $75,000
$
$5K$1M
Monthly Lease Payment $1,800
$ /mo
$100$25K
Lease Term 48 months
mo
12 mo84 mo
Residual / Buyout (% of value) 20%
%
0%60%
The equipment’s value at lease end — your buyout price if you choose to purchase.
🏦
Purchase Parameters
Financed purchase or outright buy
Down Payment $15,000
$
$0$500K
Loan Interest Rate (APR) 7.5%
%
2%30%
Loan Term 48 months
mo
12 mo84 mo
Annual Depreciation Rate 15%
%/yr
5%40%
Typical: Vehicles 15–25%, manufacturing 10–15%, technology 25–35%.
Analysis Result
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Advantage
—
Metric
📋 Lease
🏦 Buy (Financed)
Monthly Payment
—
Cash out each month
Monthly Loan Payment
—
Principal + interest
Monthly Difference
—
vs. buying
Total Lease Cost
—
Over full term
Total Buy Cost
—
Down + all payments
Asset Value at End
—
After depreciation
Cost Factor Lease Buy (Financed)
Lease makes sense when…
› You upgrade equipment every 3–5 years — avoid obsolescence risk
› Preserving working capital is a current priority
› The equipment depreciates rapidly (tech, specialized machinery)
› Operating lease treatment is favorable for your balance sheet
› Maintenance and service are bundled into the lease payment
Buying makes sense when…
› The equipment has a long useful life and holds residual value
› Section 179 or bonus depreciation can offset significant tax liability
› You plan to use the asset for longer than the comparison term
› Ownership matters for your industry (collateral, compliance)
› Your credit profile earns a low loan rate that offsets total interest
This calculator provides estimates for comparison purposes. Tax treatment (Section 179, operating vs. finance lease classification, depreciation schedules) varies by entity type, jurisdiction, and asset category. Consult your CPA or financial advisor before making financing decisions.