Equipment Buy vs. Lease Calculator
Should you lease your equipment or finance it? Find out with this calculator!
How the equipment buy vs. lease calculator works
It tallies the net cost of buying equipment over your comparison period — down payment plus loan payments, minus the residual value you keep — and sets it against the total lease payments, which leave you owning nothing.
Worked example: with equipment price of $60,000, down payment (to buy) of $6,000 and loan rate (to buy) of 8.00%, the equipment buy vs lease calculator shows cheaper over 4 years of Leasing.
- Buy — net cost
- $53,143
- Lease — total cost
- $52,800
- Residual equity if buying
- $5,413
- Buy payment
- $1,094.93
The formula
Buy net cost = down + loan payments over the period − (residual value − remaining loan balance). Lease cost = monthly lease × months.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the equipment buy vs. lease calculator
Should a business buy or lease equipment?
Buying builds an owned asset and is usually cheaper over the long run; leasing keeps payments predictable, preserves cash and avoids obsolescence. The calculator compares the net cost.
How do taxes affect the decision?
Section 179 and bonus depreciation can make buying very tax-efficient, while lease payments are typically deductible as an expense. Tax treatment often tips the choice — consult your accountant.
What about equipment that becomes obsolete?
For fast-changing technology, leasing can be smart because it shifts obsolescence risk to the lessor and makes upgrading easier at lease-end.
Is the Equipment Buy vs. Lease Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.