Lease vs. buy equipment calculator
Compare the real cost of leasing and buying business equipment (machinery, a vehicle, computer hardware...), taking into account maintenance, residual value and the discounting of future cash flows. No data is sent to a server.
How it works
This tool compares two scenarios over your chosen period of use: buying the equipment (purchase price, annual maintenance, resale at residual value at the end of the period) or leasing it (fixed annual lease payment). Future cash flows are discounted at the rate you provide, so the two options are compared in today's euros rather than as a simple sum of future amounts.
Why discount future costs?
A euro spent in 5 years costs less in present value than a euro spent today, because money that isn't spent can be invested or used elsewhere in the meantime. The discount rate reflects this opportunity cost: the higher it is, the less costs far in the future weigh in the comparison, which generally favors leasing (spread-out payments) over buying (a large upfront expense).
What does the "buy break-even point" mean?
It's the first year in which the cumulative cost of buying (price plus accumulated maintenance) falls below the cumulative cost of leasing over the same period. If your actual period of use is shorter than this point, leasing is probably the better deal; if it's longer, buying becomes the better one.
This estimate is simplified: it doesn't account for taxation (depreciation, VAT deduction, benefits specific to finance leases), the exact financing terms or your company's cash flow needs. It doesn't replace the advice of an accountant, a financial advisor or an equipment financing expert.
The calculation happens entirely in your browser: none of the data you enter is sent to a server.