Lease or Buy

Should I lease or buy equipment?

Leasing is a popular method of acquiring new equipment for your business. Although the payments may seem attractive, it may not always be the best financial decision versus purchasing the equipment outright and financing it with a low interest loan. Use the following calculator to analyze the total financial impact of up-front fees, interest rates and residual value on the lease versus buy decision.

Inputs

Assumptions

Sales Price($)

Down Payment($)

Sales tax rate (0% to 75%)

Term of analysis/lease (months) (1 to 360)

Market value of equipment at end of the term ($)

Lease

Buy

Annual percentage rate (0% to 75%)

Other up-front costs (no deposit) ($)

Annual percentage rate on loan

Term of loan (months) (1 to 360)

Other fees (financed with the loan) ($)

Outputs

Costing of Leasing
Monthly lease payment		0
Total lease payments		0
Other up-front costs	+	0
Down payment	+	0
Total cost of lease	=	0

Costing of Purchasing
Monthly loan payment		0
Total loan payments over lease term		0
Outstanding loan balance at end of lease term	+	0
Down payment	+	0
Market value at end of lease term	+	0
Total cost of purchasing	=	0