Simulation

Lease or Buy That Machine?

Leasing a $30,000 machine at $550/month for 60 months costs $33,000. Buying and keeping a $6,000 salvage value nets $24,000 — so buying saves $9,000 here, and you own the asset. If the lease included maintenance, the gap narrows.

Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Lease Total = Monthly Lease x Term. Buy Net = Price - Salvage (cash basis, ignoring financing interest). The cheaper option depends on lease rate, term, and what the asset is worth after. This is a simplified CapEx-vs-OpEx comparison; add loan interest on the buy side for a true picture.

What Should You Do?

Scenario 1: short-term need (12 months) almost always favors leasing. Scenario 2: a fast-depreciating asset (computers) favors leasing; a durable one (a truck) favors buying. Scenario 3: if salvage is near zero, buying only wins when lease cost exceeds price.

Frequently Asked Questions

Should I include loan interest on the buy?

Yes for accuracy — add it to Buy Total. This tool shows the cash basis; layer financing for the real comparison.

What about tax?

Section 179 and bonus depreciation can make buying much cheaper after tax — see our Section 179 tool.

Lease pros beyond price?

Lower upfront cash, easier upgrades, often includes maintenance. Weigh those against the price gap.

Authoritative References

SBA — Equipment Financing — SBA guidance on equipment financing options.
Investopedia — Lease vs Buy — Lease-versus-buy trade-offs.