Equipment Lease vs Buy NPVFinance & Salary

Commercial Equipment Lease vs Buy Financial Analysis Calculator

Evaluate net present cost, tax write-offs, and cash flow impact between leasing commercial machinery and purchasing via cash or loan.

Calculator Inputs

Live Real-Time
$
Quick select:
$/mo
Quick select:
21 %
0 %40 %
Calculated ResultEquipment Lease vs Buy NPV

Net Effective After-Tax Purchase Cost

$48,000

Net Effective After-Tax Lease Cost

$70,152

Net Savings of the Winning Option

$22,152

Detailed Calculation Breakdown

Upfront Purchase Capital
$75,000
Total Gross Lease Payments
$88,800
Net Economic Purchase Cost
$48,000

Calculation Methodology

Net Buy Cost = Purchase Price - Depreciation Tax Shield - Present Value of Salvage. Net Lease Cost = Total Lease Payments - Lease Expense Tax Shield.

Important Legal & Educational Disclaimer

Models after-tax discounted cash flows accounting for depreciation tax shields on purchases and operating lease expense deductions.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Lease payments are typically 100% tax-deductible as operating business expenses, providing immediate cash flow tax relief.
Related Calculators

Related Calculators

Recommended tools and calculators tailored to your current calculation

Explore all tools