Equipment Lease vs. Buy Calculator

This calculator helps businesses to determine whether leasing or buying equipment is more cost-effective. It is designed for business owners who need to make informed financial decisions regarding equipment acquisition.

Data Source and Methodology

All calculations are based on standard financial formulas and industry data. For more information, consult your financial advisor.

The Formula Explained

Lease Cost: Total Lease Cost = Lease Payment × Number of Payments

Purchase Cost: Total Purchase Cost = Principal + Interest

Glossary of Terms

  • Equipment Cost: Initial cost of the equipment.
  • Lease Term: Duration of the lease agreement in years.
  • Lease Rate: Annual interest rate for the lease.
  • Loan Interest Rate: Annual interest rate for a loan if buying.

Frequently Asked Questions (FAQ)

What factors should I consider when deciding to lease or buy equipment?

Consider total cost, tax advantages, asset depreciation, and your business's financial stability.

How do I calculate the total cost of leasing equipment?

Sum up all lease payments over the contract period, including any additional fees.

Tool developed by Ugo Candido. Content reviewed by the ExampleCorp Expert Team.

Last reviewed for accuracy on: October 1, 2023.

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