Equipment Buy vs Lease

Equipment Buy vs. Lease

Compare the after-tax PV cost of buying (with a loan) vs leasing equipment.

Equipment price ($)

Loan rate (%)

Term (years)

Residual value ($)

Monthly lease ($)

Purchase option at end ($)

Marginal tax rate (%)

Buy: total paid

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Buy: net (after residual)

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Lease: total paid

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Better option (after tax)

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