Jadebrook Commercial Capital built this lease vs. buy equipment calculator for Watauga County, North Carolina owners pricing a kitchen machine, a vehicle lift or construction equipment. The calculator prices the purchase as a loan; the sections below compare fair-market-value and $1 buyout leases by hand. Every figure is arithmetic on the numbers entered; a funding partner sets actual terms.
What the Equipment Calculator Returns
Enter the equipment price, the down payment, an annual rate and the number of months. The calculator returns the monthly payment, the total of all payments and the interest paid over the term. The rate is the number you enter, not a quote; a partner sets the real rate after reviewing a request.
A Kitchen's Dish Machine Worked Both Ways
Illustration only, invented figures: a restaurant prices an invented $32,000 dish machine and booster heater. Bought with $3,200 down over 60 months at an invented annual rate of 9.5%, the payment is about $605 and the total cost, down payment included, about $39,491 (our arithmetic).
A fair-market-value lease at an invented $590 a month for 60 months, with an invented $4,800 buyout at the end, totals $40,200 if the restaurant buys the machine (our arithmetic). A $1 buyout lease at an invented $655 a month for 60 months totals $39,301 (our arithmetic). Set side by side, the totals show which path costs more; the lease's lower monthly figure or the loan's ownership from day one can still decide it.
Equipment Lease vs. Finance: FMV, $1 Buyout and Loan
| Structure | Who owns it during the term | End of term |
|---|---|---|
| Equipment loan | The business, with a lien until paid | Owned outright |
| $1 buyout lease | The lessor | Bought for $1 |
| Fair-market-value lease | The lessor | Buy at fair value, return it, or renew |
Tax treatment differs between leases and loans; ask an accountant how each would be handled for the business before choosing.
Comparing an Equipment Buy and Lease for a Watauga County, NC Contractor
Illustration only, invented figures: a contractor prices an invented $68,000 mini excavator with $6,800 down at an invented annual rate of 9.25%. Over 36 months the payment is about $1,953 and the payments total about $70,318; over 60 months the payment is about $1,278 and the payments total about $76,671 (our arithmetic). The longer term lowers the payment and raises the total, and the calculator shows both in one pass. The county's construction sector held 233 employer establishments in 2023 (County Business Patterns 2023).
Reading the Results for a Repair Shop's Lift
Illustration only, invented figures: two lifts at an invented $19,600 installed, financed over 48 months at an invented annual rate of 9.5%, cost about $492 a month (our arithmetic). If each added lift lets the shop bill more labor each month, the monthly figure can be set against that income. Watauga County, NC counted 25 auto repair employers in 2023 (County Business Patterns 2023); the auto repair page covers the rest of a shop's funding.
When the Lower Payment Is Not the Lower Cost
A lease's monthly figure can sit below a loan payment for the same machine while its total, buyout included, sits above the loan's. The reverse also happens. The only way to know is to total both, including the down payment, every monthly amount, fees and the buyout, and set the totals side by side before choosing.
Numbers to Pull From the Quote First
- The equipment price, with installation, freight and any permits listed apart.
- The down payment or deposit the seller asks for.
- For a lease: the monthly payment, the term and the buyout amount.
- The working life you expect from the machine.
- What the machine earns or saves each month.
The equipment financing page covers what partners read on a machine request.
By Jadebrook Commercial Capital · Updated