Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Cheaper option
Buying is cheaper
Net cost to buy
$32,800
Total lease cost
$36,000
Difference
$3,200
Effective monthly cost of buying
$683
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One click, a permanent link with your numbers baked in.
How to use this
- 1Enter purchase price ($).
- 2Enter monthly lease payment ($).
- 3Enter term (months).
- 4Enter resale value after term ($).
- 5Enter owner maintenance ($/yr).
- 6Read your cheaper option on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Leasing preserves cash but you own nothing at the end. Buying costs more up front but leaves you with residual value.
Worked example
Using the values the calculator loads with:
Inputs
- Purchase price: 40000 $
- Monthly lease payment: 750 $
- Term: 48 months
- Resale value after term: 12000 $
- Owner maintenance: 1200 $/yr
Results
- Cheaper option: Buying is cheaper
- Net cost to buy: $32,800
- Total lease cost: $36,000
- Difference: $3,200
- Effective monthly cost of buying: $683
What each field means
Inputs
- Purchase price ($)
- The purchase price used in the calculation, measured in $. Starts at 40000 $ so you have a working example on load.
- Monthly lease payment ($)
- The monthly lease payment used in the calculation, measured in $. Starts at 750 $ so you have a working example on load.
- Term (months)
- The term used in the calculation, measured in months. Starts at 48 months so you have a working example on load.
- Resale value after term ($)
- The resale value after term used in the calculation, measured in $. Starts at 12000 $ so you have a working example on load.
- Owner maintenance ($/yr)
- The owner maintenance used in the calculation, measured in $/yr. Starts at 1200 $/yr so you have a working example on load.
Results
- Cheaper option
- Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Net cost to buy
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total lease cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Difference
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Effective monthly cost of buying
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the lease vs buy equipment calculator work?
Leasing preserves cash but you own nothing at the end. Buying costs more up front but leaves you with residual value. The underlying maths is: Lease cost = payments × term. Buy cost = price − resale + financing.
What do I need to enter?
5 values: purchase price, monthly lease payment, term, resale value after term, and owner maintenance. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the cheaper option result mean?
It is returned as a plain value and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Equipment Lease vs Buy Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/equipment-lease-vs-buy
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/equipment-lease-vs-buy" target="_blank" rel="noopener">Equipment Lease vs Buy Calculator — RevenueLab</a> (2026).</p>
Source: [Equipment Lease vs Buy Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/equipment-lease-vs-buy) (2026).