Finance Tools

Agricultural Equipment Lease vs Loan Calculator

Compare leasing agricultural equipment versus financing with a loan. Estimate effective monthly cost, total out-of-pocket cost, and break-even usage horizon including residual value and remaining loan balance.

Agricultural Equipment Lease vs Loan Calculator

Compare leasing versus loan financing for agricultural equipment using effective monthly cost, total out-of-pocket, and a rough break-even horizon.

Equipment & usage

Equipment price ($)

Years of use

Expected resale value at end ($)

Used for both options to estimate end value.

Lease

Monthly payment ($)

Lease term (months)

Down payment ($)

Upfront fees ($)

Buyout price ($)

Only applied if you keep it beyond the lease term.

Loan financing

Down payment ($)

APR (%)

Loan term (months)

Fees financed ($)

Estimated loan monthly payment: $1,730

Ongoing costs (annual)

Maintenance (lease) ($/yr)

Maintenance (loan/buy) ($/yr)

Insurance ($/yr)

Lease: effective monthly cost

$1,481

Net cost ÷ months of use (includes ongoing costs and end value).

Loan: effective monthly cost

$1,750

Includes resale value minus remaining loan balance.

Result

Leasing is cheaper by about $269 per month (effective).

Break-even (rough): Not found within scan range

How it works

Lease net cost includes payments, buyout (if needed), maintenance, insurance minus end value.
Loan net cost includes down payment + payments + costs minus (resale − remaining balance).
Effective monthly cost = net cost ÷ months of use.
Break-even is approximated by scanning usage horizons.

FAQ

Why does remaining balance matter?
If you sell or replace equipment before the loan ends, you must pay off the remaining principal.

Why keep resale value the same for both options?
It isolates the financing choice. If lease restrictions affect value, adjust resale downward.

How to use this agricultural equipment lease vs loan calculator

Enter equipment price and expected years of use.
Enter lease terms (payment, months, fees, buyout).
Enter loan terms (down payment, APR, loan term, financed fees).
Enter annual costs (maintenance, insurance) and expected resale value.
Compare effective monthly cost and break-even point.

Example

Example lease vs loan comparison:

Price: $120,000, use: 6 years, resale: $45,000
Lease: $1,900/mo for 48 months, buyout $40,000
Loan: $20,000 down, APR 7.0% for 72 months
Outputs: effective monthly costs + break-even

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