A lease vs. buy calculator for equipment and vehicles
This lease vs. buy calculator shows the real after-tax cost of paying cash, taking a loan, or leasing. The lowest monthly payment isn’t always the cheapest choice. So the calculator counts tax savings from depreciation, interest, and lease payments. It also includes resale value and converts each option to today’s dollars.
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Business owners buying equipment, machinery, or a vehicle, and anyone weighing a lease quote against a loan.
What the lease vs. buy calculator helps you do
- Compare three options side by side, year by year.
- See the effect of deducting the full cost in year one or spreading it out.
- Account for resale value and any loan balance still owed.
- Find the cheapest option in today’s dollars.
What’s included
- Lease vs. Buy Calculator (Excel), with a sample comparison filled in.
How it works
First, enter the purchase price, how long you’ll keep it, and its expected resale value. Next, add your tax rate, loan terms, and lease quote. The calculator then builds a year-by-year cash flow for each option. Finally, it ranks them by cost in today’s dollars.
Why the math matters
Taxes can change which option wins. For example, deducting the full cost up front may favor buying. The IRS explains depreciation rules in Publication 946, How to Depreciate Property. After you buy, track the asset in our Fixed Asset & Depreciation Register.
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Instant download. Requires Excel 2016 or newer (or Microsoft 365). Estimate only; your tax preparer decides how the deduction is taken.