Equipment Lease vs Buy NPV Calculator
Compare the after-tax Net Present Value (NPV) of leasing versus purchasing commercial equipment, machinery, or vehicles with depreciation tax shields and salvage values.
Equipment & Purchase Parameters
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Years
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Lease Terms & Capital Costs
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Financial Recommendation
LEASING IS CHEAPER
Saves $1,214
Leasing reduces after-tax net present cost by 3.2% compared to purchasing.
Purchase NPV (Cost)
$38,203
Net after-tax cash outflow
Lease NPV (Cost)
$36,989
Discounted lease payments
Tax Deductions & Cash Flow Breakdown
PV of Depreciation Tax Shield:
$7,985
PV of Resale Salvage Value:
$6,806
PV of After-Tax Maintenance:
$2,995
Total Nominal Lease Outflows:
$60,000