Equipment Lease versus Purchase Present Cost
Compare an entered equipment purchase with lease payments over one common monthly horizon.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Discount monthly-equivalent maintenance and monthly lease payments at an effective monthly rate derived from the annual rate. Subtract discounted purchase salvage and include lease end fees.
Purchase PV=upfront+maintenance PV−salvage PV; lease PV=initial fee+payments PV+maintenance PV+end-fee PV
Worked example
At zero discount over 12 months, buying for 1200 with maintenance 120 and salvage 600 costs 720 net; leasing at 50/month with no other costs totals 600.
Assumptions and input details
Same service and horizon are assumed. Annual maintenance is explicitly allocated to equal month-end cash payments. Initial costs occur now; salvage and return fee occur at the final month end. No financing, tax depreciation, ownership-option exercise, usage limits or maintenance prediction. This is an entered-cost comparison. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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