Business Calculators

Equipment Buy vs. Lease Calculator

Should your business buy equipment with a loan or lease it? Compare the net cost of each over the same period, counting residual value.

Inputs

Equipment price

Down payment (to buy)

Loan rate (to buy)

Loan term (years)

Monthly lease payment

Comparison period (years)

Equipment value at end (% of price)

Estimates only. Change any value to recalculate instantly.

Cheaper over 4 years Leasing by $343 after residual value

Buy — net cost $53,143 after residual value

Lease — total cost $52,800

Residual equity if buying $5,413

Buy payment $1,094.93

Net cost compared

Buying (net) $53k
Leasing $53k

Net cost if you exit Buy (net of residual)Lease

Buying builds an asset you own — worth $18,000 at the end here — while leasing keeps payments predictable and avoids obsolescence. Tax treatment (Section 179, lease deductions) can tip the decision, so check with your accountant.

Net cost by yearView table

Year	Buy (net)	Lease (total)	Residual equity
1	$14,489	$13,200	$4,650
2	$28,219	$26,400	$4,059
3	$41,127	$39,600	$4,291
4	$53,143	$52,800	$5,413

How this calculator works

This calculator runs entirely in your browser — nothing you enter is sent anywhere, and there is no sign-up. Change any input and the result, breakdown, and schedule update instantly.

Rate and cost fields are pre-filled with current benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)), so your first result is already realistic — replace them with your own quote to see your numbers. To weigh one option against another, use the loan comparison calculator.

Common questions

Is this calculator free, and do I need to sign up?

Yes and no — it is completely free and asks for no account or personal details. Every calculation happens in your browser, so nothing you type is stored or sent to us.

How accurate are the results?

The math is exact for the inputs you give it, but the defaults are national benchmarks — your real rate, fees, taxes, and insurance will differ. Treat the result as a close estimate to refine with a real quote.