Lease vs. Buy Calculator

Should you lease or buy? The full financial comparison

What is this? Leasing vs. buying isn't just a monthly payment comparison. You need to account for the purchase price, lease payments, residual value at the end, investment returns on the capital you'd use to buy, maintenance costs, and tax deductions. This calculator does the full analysis.

The key question: If you buy, what returns would you earn on the capital? If those returns beat the "cost" of leasing (lease payments minus the value of what you don't own), buying wins.

Who it's for: Business owners choosing between leasing or buying equipment, vehicles, or even office space.

Asset Details

Purchase Price ($)

Expected Resale Value After Term ($)

Analysis Period (years)

Your Expected Return (%)

Lease Option

Monthly Lease Payment ($)

Lease Term (months)

Security Deposit ($)

End-of-Lease Buyout ($)

Buy Option (Ownership)

Down Payment ($)

Annual Maintenance ($)

Financing Rate (%)

Tax Deduction (annual, $)

Cost Comparison

Total Lease Cost

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over ${document.getElementById('years').value} years

Total Buy Cost

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net of resale value

Winner

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Lease Monthly

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Buy Monthly (avg)

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Break-Even Resale

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For educational purposes. Actual costs vary by tax situation, financing terms, and asset condition. Consult a financial advisor.

Equipment Financing & Leasing

Buy or lease equipment for your business. Compare financing options side by side.

Lendio — Business Loans →

$75 per funded loan through FlexOffers — equipment loans, lines of credit

Pitney Bowes Equipment Financing →

Financing for office equipment, postage, shipping solutions

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

When should I lease equipment vs buy?

Lease when: equipment becomes obsolete quickly, you need flexibility, or cash flow is tight. Buy when: equipment holds value, you use it heavily, or the lease terms are unfavorable. Calculate the total cost of each option over the useful life.

What is a fair lease rate factor?

Lease rate factors typically range from 0.015 to 0.035 per month. A rate factor of 0.020 on a $10,000 item = $200/month. Multiply the rate factor by the equipment cost to estimate monthly payments.

Is leasing equipment tax deductible?

Operating leases: payments are fully deductible as business expenses. Capital leases (which transfer ownership): you're depreciating the asset as if you bought it. Consult your CPA on which applies to your situation.

Equipment Financing & Leasing

Frequently Asked Questions

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