Lease vs. Buy Equipment Calculator

Leasing vs. Buying: Key Considerations

Both leasing and buying have distinct advantages. Leasing typically offers lower upfront costs, potential tax benefits through 100% lease deduction, and flexibility to upgrade equipment at the end of the term. Buying builds equity and may be cheaper over the long term if the equipment has a long useful life.

Tax Implications

• Buying: Depreciation deductions spread over useful life; interest on financing may be deductible
• Leasing: Lease payments are typically 100% tax-deductible as a business expense
• Section 179: Some equipment may qualify for immediate expensing under Section 179

When to Choose Each Option

Consider leasing if: You need to preserve cash flow, prefer lower upfront costs, want flexibility to upgrade, or expect rapid technological changes.

Consider buying if: The equipment has a long useful life, you expect to use it beyond the lease term, or you want to build equity in assets. If you're unsure about your long-term plans, our team can help you explore all options—no upfront costs, success-based commission only if the deal closes.