Finance Tools

Farm Equipment Lease vs Buy Calculator

Compare leasing vs buying farm equipment using monthly payments, total cost, ownership value, and break-even points. Includes residual value, maintenance, tax assumptions, and sensitivity checks.

Farm Equipment Lease vs Buy Calculator

Compare leasing vs buying equipment using total cost, effective monthly cost, end-of-horizon value, and a rough break-even estimate. (Decision-grade model, not accounting advice.)

Equipment & usage

Equipment price ($)

Years you expect to use it

Used to compute “effective monthly cost”.

Expected resale value at end ($)

Conservative estimate helps avoid over-buying.

Effective tax rate (optional %)

Very simplified proxy for deductibility impact.

Lease option

Monthly lease payment ($)

Lease term (months)

Lease down payment ($)

Upfront fees ($)

End-of-lease buyout price ($)

If you keep it after the lease ends, this is what you pay to own it.

Buy / loan option

Down payment ($)

APR (%)

Loan term (months)

Fees financed ($)

Estimated loan monthly payment: $2,313

Ongoing costs (annual)

Maintenance (lease) ($/yr)

Maintenance (buy) ($/yr)

Insurance ($/yr)

Lease: effective monthly cost

$2,130

Includes ongoing costs and end value (if buying out), with an optional tax proxy.

Buy: effective monthly cost

$2,312

Accounts for resale value and remaining balance at the end of your use horizon.

Result

Leasing is cheaper by about $182 per month (effective).

Break-even (rough): 59 months (~4.9 years)

Lease buyout assumed only if your usage exceeds the lease term.

How it works

Lease cost = upfront + lease payments + (buyout if you keep it) + maintenance + insurance − end value.
Buy cost = down payment + loan payments + maintenance + insurance − (resale − remaining balance).
Effective monthly cost = net cost ÷ months of use.
Break-even is approximated by scanning different usage horizons.

FAQ

Why include resale value?
The end value is a major part of the real cost of ownership—ignoring it often makes buying look worse than it is.

Is the tax part accurate?
It’s a simplified proxy. Real deductions depend on jurisdiction, depreciation rules, and your filing situation.

What if I plan to replace equipment early?
Lower the years of use. If you sell before the loan ends, remaining balance matters a lot.

How to use this farm equipment lease vs buy calculator

Enter equipment price and expected years of use.
Fill in lease details (monthly payment, term, down payment, end-of-lease buyout).
Fill in buy/loan details (down payment, APR, loan term).
Add annual costs (maintenance, insurance) and expected resale value.
Compare total out-of-pocket cost, effective monthly cost, and break-even.

Example

Example lease vs buy comparison:

Price: $180,000, use: 7 years, resale: $70,000
Lease: $2,600/mo for 60 months, $0 down, buyout $60,000
Buy: $30,000 down, 7.25% APR for 84 months
Outputs: total cost lease vs buy, effective monthly cost, break-even

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