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.
Common Assumptions
Sales price ($) 
Down payment ($) 
Sales tax rate (%) 
Term of analysis/lease (months) 
Market value of equipment at end of analysis/lease term ($) 
Annual percentage rate (%) 
Other up-front costs (do not include deposit) ($) 
Annual percentage rate on loan (%) 
Term of loan (months) 
Other fees (financed with the loan) ($) 
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

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