Lease vs Buy Calculator — Should You Buy or Lease Your Equipment?

Compare Your Options

Purchase Price ($)

Lease Monthly Payment ($)

Lease Term (months)

Expected Usage (years)

Monthly Maintenance Cost ($)

For buying only - leases often include maintenance

Resale Value (% of purchase price)

Lease vs Buy Analysis

Total Cost to Buy

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Total Cost to Lease —

Recommendation —

Savings —

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How It Works

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Enter Both Options

Input the purchase price and expected resale value for buying, plus the monthly payment and term for leasing. Include maintenance costs that apply to ownership.

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Compare Total Costs

The calculator compares the total cost of ownership (purchase + maintenance - resale) against the total lease cost over your expected usage period.

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Get a Clear Answer

See which option saves you more money and by how much. Make a confident decision backed by real numbers, not guesswork.

Manage Your Equipment Fleet with Reservety

Whether you buy or lease, Reservety tracks your entire fleet. Monitor utilization, schedule maintenance, and manage bookings from one platform.

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Frequently Asked Questions

When is it better to lease construction equipment?

Leasing is usually better when you need equipment for a short-term project, when the equipment depreciates rapidly, when you want to preserve cash flow, or when maintenance is included in the lease. It also makes sense if you want to upgrade to newer equipment every few years.

When is it better to buy construction equipment?

Buying is typically better for equipment you'll use heavily over many years, when you can maintain it yourself, and when the equipment holds its resale value well. If you plan to keep equipment for 5+ years and it will be utilized frequently, buying usually wins on total cost.

What resale value should I expect for construction equipment?

Well-maintained construction equipment typically retains 20-35% of its purchase price after 5-7 years. Premium brands like Caterpillar, John Deere, and Kubota tend to hold value better. Equipment with low hours and documented maintenance history commands higher resale prices.

Does this calculator account for tax benefits?

This calculator shows the direct cost comparison. Both buying and leasing offer tax benefits: purchased equipment can be depreciated (or fully deducted under Section 179), while lease payments are fully deductible as business expenses. Consult your accountant for the tax impact specific to your situation.