Equipment lease vs buy calculator
Compare the total cost of leasing a machine with buying it on a loan over the same term, counting what you get back when you sell it.
Your numbers
Buy with a loanLeaseBoth See your resultResult
Buying is cheaper by $51,293over 60 months Net cost to buy $107,307$2,705.12 a month, minus $70,000 resale Net cost to lease $158,600 Stop working this out by handIn FleetZap, labor, parts and outside vendor costs from every work order roll up to each machine, so the cost of keeping one is never a guess.
See FleetZap Maintenance · Try the demoThe formula
Buy = Down payment + Loan payments − Resale · Lease = Lease payments + Fees (+ Buyout − Resale, if you buy it out)
With the example: buying costs $15,000 + 60 × $2,705 − $70,000 ≈ $107,300, and leasing 60 × $2,600 + $2,600 = $158,600. The result swings on the resale value, so try a low and a high guess. Taxes are left out: lease payments and depreciation are deducted differently, so ask your accountant. The rent vs buy guide covers the short-term case.
Using the numberWhat to do with it
- Leasing tends to win when you use a machine for a short time or need the newest model; buying tends to win on machines you keep for many years.
- Read the lease for hour limits and return condition: excess hours and damage charges can erase the saving.
- Either way, the machine still needs its maintenance. Leases often require service records at return.
Guides behind this calculator
Rent vs buy equipment Equipment lifecycle cost When to replace equipmentMore free calculators
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The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.
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- Parts & purchasing
- Compliance
- Assets, reports & KPIs
Good to know
Is it better to lease or buy equipment?Buying usually costs less on machines you keep for many years, because you keep the resale value. Leasing can win for short use, fast-changing needs or when cash is tight. Compare the total cost over the same term.
What does the lease vs buy result depend on most?The resale value at the end of the term, the loan rate and the lease payment. Try a low and a high resale guess to see how much the answer moves.
Are taxes included?No. Lease payments and depreciation are treated differently for tax, so ask your accountant how each option affects your return.
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