# Lease vs Buy Calculator

Canonical URL: https://fundmyequipment.com/calculator/lease-vs-buy/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_calculator

## Summary

Side-by-side comparison.

## Content

The Lease vs Buy Calculator is a no-signup tool for modeling lease vs buy scenarios. Below is the methodology, assumptions, and notes on how to use the output.How the calculator worksThis calculator compares the total cost of ownership across three structures: equipment loan ($1 buyout equivalent), $1 buyout lease (finance lease), and FMV lease (true lease). Inputs include equipment price, down payment percent, term length, and credit tier. Outputs include monthly payment range, total payments, and a Section 179 tax-savings estimate.The formula uses standard amortization: Payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate (APR/12), and n is the number of monthly payments. For lease structures with residual, we adjust to: Payment = (P - R/(1+r)^n) × r / (1 - (1+r)^-n) + R×r, where R is the residual value.AssumptionsRate ranges: blended across our partner lenders, refreshed monthly. Actual rates depend on lender underwriting.Section 179 calculations: 2026 limit of $1.22M, phase-out at $3.05M, 60% bonus depreciation rate. Assumes 25% effective federal tax rate unless overridden. Not tax advice.Amortization: standard monthly amortization (compound interest). Most equipment loans amortize this way.Residuals (FMV lease): 20% typical for general equipment; varies 15-25% by category and age.What this calculator does not includeOrigination fees (sometimes financed into the loan, sometimes paid at close)Doc fees ($150-500 typical)Insurance premiums (separate from financing payment)Sales tax (state-specific; see your state guide)Late fees or prepayment penaltiesAlways ask the lender for an all-in quote including all fees before signing.Apply with these numbersThe "Apply with these terms" button hands off to our application form pre-filled with your calculator inputs. /apply/ for soft-pull pre-qualification.