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Equipment Lease vs Buy Calculator

Compare lease vs buy equipment costs for your business — total cost, break-even point, and which option may fit better.

Decision support

Interpretation

Net buy cost after resale is about $11,588.85 over 36 months (loan payments, maintenance, and down payment minus estimated resale value). That is about $8,931.15 less than leasing in this scenario.

Recommendation

Buying may be better if you plan to use the equipment for a long time and can handle upfront costs.

Assumptions

Net buy cost subtracts estimated resale value from total ownership payments. Taxes and accounting treatment are not fully modeled. Resale value is estimated. Maintenance and financing costs may vary.

Detailed results

Net buy cost after resale ($)
11,588.85
Total lease cost ($)
20,520
Cost difference — buy minus lease ($)
-8,931.15
Break-even point (months)
36
Break-even summary
About 36 months
Better option
Buy

Should you lease or buy equipment for your business? This lease vs buy equipment calculator compares total costs over the lease period, including financing, maintenance, and estimated resale value — in plain language, not accounting jargon.

How to use this calculator

  1. Enter equipment purchase price, down payment, loan rate, and loan term.
  2. Enter monthly lease payment and lease term.
  3. Add expected annual maintenance and resale value if you buy.
  4. Review total costs, break-even timing, and which option looks better.

Formula

Net buy cost after resale = Down payment + Loan payments + Maintenance over the comparison period − Estimated resale value. Total lease cost = Lease payments + Maintenance during the lease term.

Example

A $28,000 oven with $5,000 down, 8% financing, and $520/month leasing over 36 months may show buying cheaper long term if resale value is strong — or leasing cheaper if upfront cash is tight.

Frequently asked questions

Does this include tax benefits?
No. This is a practical cost comparison for business decisions, not tax or accounting compliance software.
What maintenance should I include?
Use annual service contracts, repairs, and parts you expect whether you lease or own.

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