Lease vs. Buy Equipment Calculator

Leasing vs. Buying: Key Considerations

Leasing and buying have different cash-flow, contract, maintenance, residual-value, and tax consequences. Do not assume a lease payment is fully deductible or that buying produces a particular tax result; model the proposal and review it with a tax adviser.

Tax Implications

• Buying: Depreciation deductions spread over useful life; interest on financing may be deductible
• Tax: Depreciation, Section 179, lease deductions, and capitalization treatment depend on the property, entity, use, agreement, and current tax law.
• 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.