Business
Equipment lease versus purchase Calculator
Compare the discounted ownership and lease costs of a business asset. This free equipment lease versus purchase calculator shows the calculation and its assumptions so you can compare your own figures.
Your results
Compare the discounted ownership and lease costs of a business asset.
Calculated outcomes
- Lower Cost Option
- Purchase
Assumptions and estimates
- Unfinanced purchase comparison with annual payments in arrears. Enter consistent VAT and tax treatment; financing, capital allowances, lease restrictions and service differences are not inferred.
- Method: Purchase present cost = price + discounted operating costs − discounted residual value. Lease present cost discounts lease and operating payments.
- Annual payments are in arrears. Enter consistent tax and VAT treatment; financing and capital allowances are not inferred.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the equipment lease versus purchase calculation works
Purchase present cost = price + discounted operating costs − discounted residual value. Lease present cost discounts lease and operating payments.
Annual payments are in arrears. Enter consistent tax and VAT treatment; financing and capital allowances are not inferred.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review purchase present cost and lease present cost and purchase saving, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Purchase price (€)
- 50000
- Annual ownership operating cost (€)
- 3000
- Sale value at end (€)
- 15000
- Annual lease payment (€)
- 12000
- Annual lease operating cost (€)
- 1000
- Comparison period (years)
- 5
- Annual discount rate (%)
- 8
- Purchase Present Cost
- €51,769.38
- Lease Present Cost
- €51,905.23
- Purchase Saving
- €135.85