How this comparison works. Both paths are reduced to one number: total cash out, minus what the equipment is worth to you at the end (if you end up owning it). A loan means you own the asset outright when it's paid off. A lease depends on what you do at the end — walk away, or buy it.
🏦 Loan Option
📄 Lease Option
One factor this calculator doesn't model: taxes
Equipment loans typically let you claim Section 179 / bonus depreciation on the full purchase price in the year you buy, even though you're financing it — a real cash-flow advantage many owners don't realize applies to financed (not just cash) purchases. Lease treatment varies by lease structure (operating vs. capital/finance lease) and changes with tax law. This can meaningfully shift the true after-tax comparison — talk to your CPA before deciding based on cost alone.
For educational purposes only. This tool compares pre-tax cash cost only and does not model Section 179, depreciation, or other tax effects, which can meaningfully change the real comparison. Actual loan and lease terms, fees, and residual values vary by lender/lessor and equipment type. Consult your CPA and financing provider before deciding. Nothing here constitutes financial advice or a discouragement from applying for credit. Every person has the right to apply for credit from any lender.