Buying looks cheaper until you count interest, maintenance, and resale — and leasing looks cheaper until you add up the months. Enter both and this compares the real total cost over how long you'll actually keep it.
If you buy it
If you lease it
Planning estimate only — general information to help you think it through, not financial, tax, or legal advice. Your numbers stay in your browser.
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The longer you keep it, the more owning spreads out — here's the monthly cost each way over different horizons:
| If you keep it | Own it / month | Lease / month | Cheaper |
|---|
The tipping points around your result — so you know the conditions, not just the answer:
Total cost to own = purchase price + loan interest + maintenance over the months you keep it − resale value at the end. Total cost to lease = monthly lease × the same number of months.
Break-even is the number of months where owning and leasing cost the same; keep it longer and buying wins, shorter and leasing wins. If the equipment generates revenue, payback is the purchase price ÷ the monthly revenue it produces.
A planning estimate — not tax or financial advice. Leases and loans have terms (buyouts, mileage/usage caps, tax treatment) this doesn't model; read the contract.
Over a long enough life, buying is almost always cheaper because you own an asset with resale value instead of paying indefinitely. Leasing is cheaper when you'll replace the equipment soon, want lower upfront cost, or value being able to upgrade — the break-even month tells you where the two cross for your numbers.
The real all-in cost of buying: the purchase price plus any loan interest plus maintenance over the time you keep it, minus the resale value you recover at the end. Comparing that to the full run of lease payments is the only apples-to-apples way to decide.
It can — buyout options, usage or mileage caps, and different tax treatment. This tool compares the headline cash cost each way; always read the lease terms, and check the tax treatment with your accountant before deciding.
Last reviewed: September 2026. Free to use, no signup — a ToolWise Digital decision engine.
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