This tool helps you compare the total financial impact of leasing vs buying.

Here's how it works

1. Enter the equipment price You can use a quote, auction price, or budget estimate.
2. Choose your lease term and buy term Most businesses use 24–60 months for both.
3. Add the interest rate Use your expected financing rate (8–10% is a common starting point).
4. Enter lease residual (if any) This is the estimated value of the equipment at the end of the lease.
5. Add Section 179 tax deduction (optional) If buying, you can factor in the full tax write-off in Year 1.
6. Hit Calculate You’ll instantly see the monthly cost, total repayment, and which option saves more in the long run.

Here are a few examples to help you compare leasing and buying in practical scenarios. Each one shows how loan terms, tax benefits, and monthly costs play out side-by-side.

Example 1 – Medical Imaging Equipment

• Equipment Cost: $80,000
• Lease Term: 48 months
• Buy Term: 60 months
• Interest Rate: 8%
• Section 179 Deduction (Buy): $80,000

Lease Option

• Monthly Payment: ~$1,940
• No upfront cost
• Total Lease Cost: ~$93,120

Buy Option

• Monthly Payment: ~$1,620
• Section 179 Tax Savings: ~$16,800 (21% tax bracket)
• Adjusted Total Cost: ~$80,400

Result: Buying saves more over time if you plan to keep the equipment long-term and can use the tax deduction.

Example 2 – Food Truck Setup

• Cost: $25,000
• Lease Term: 36 months
• Buy Term: 36 months at 9% APR
• No Section 179 deduction used

Lease

• ~$735/month
• Total Cost: ~$26,460

Buy

• ~$797/month
• Total Cost: ~$28,692
• Ownership after final payment

Result: Leasing has lower monthly cost, but buying builds long-term equity.

Example 3 – Landscaping Equipment (Startup Use)

• Cost: $15,000
• Lease: 24 months
• Buy: 24 months at 10% APR

Lease

• ~$670/mont
• Total: ~$16,080

Buy

• ~$692/month
• Total: ~$16,608
• Ownership after 2 yearsResult: If short-term use is the goal, leasing offers lower risk and flexibility.

Leasing is a smart option for many small businesses — especially when you want to stay flexible or avoid large upfront costs.

Here’s when leasing might be the better fit

You want lower upfront costs

Leases usually require little or no down payment, freeing up cash for other expenses.

You upgrade equipment frequently

If your business relies on staying current — like tech, medical, or food service — leasing helps you rotate gear more easily.

You want predictable expenses

Fixed monthly payments make it easier to budget and manage cash flow.

You’re not sure how long you’ll use the equipment

If it’s for a short-term contract or seasonal job, leasing avoids long-term ownership risks.

You’re early in your business journey

Startups often choose leases to minimize early debt while building credit and revenue.

Bottom line: Leasing is often best when flexibility, cash flow, or short-term use matters more than long-term ownership.

Buying makes more sense when you plan to keep the equipment long-term and want full ownership from the start.

Here’s when buying is likely the smarter choice:

You want to build long-term equity

Once your loan is paid off, the equipment is yours — with no more monthly payments.

You’ll use the equipment for years

If the machine will stay in use for 5+ years, buying often costs less over time than leasing and replacing.

You qualify for Section 179

With this tax deduction, you may be able to write off the entire cost of the equipment in year one — even if it’s financed.

You want more control

You can modify, resell, or keep the equipment as long as you want — with no lease restrictions.

You’ve secured a low interest rate

If your credit is strong and you lock in a low rate, buying becomes even more cost-effective.

In short: Buying is best when you want full control, long-term use, and the chance to benefit from tax deductions and future resale value.