Leasing against buying a piece of equipment over the lease term, netted against the residual value you still hold. The same comparison as a vehicle, and the residual assumption matters even more because specialised kit can be worth very little second-hand.
Also called: equipment leasing calculator, machinery lease or buy.
Leasing costs less over 36 months. Leasing costs $19,200.00 and buying costs $20,092.94 after the $19,250.00 the car is still worth.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
A lease covers the value consumed during the term; a purchase leaves you owning an asset with whatever resale value it still has. Compare what you spent less what you still hold. For equipment the residual is the number to be sceptical about: highly specific machinery often has almost no second-hand market, which pushes the honest comparison towards leasing.
buying costs the payments made less the car you still own; leasing costs every payment and leaves nothingEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Which costs lessLeasing costs less
arithmetic identity
Open this exampleWhich costs lessLeasing costs less
boundary: with no residual the buyer has consumed the whole asset
Open this exampleWhich costs lessBuying costs less
degenerate case: barely any depreciation over one year
Open this exampleFormula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator