Lease Vs. Buy Analysis

Step 1: Calculate Present Value of Lease Payments

Monthly Lease payment $
Potential Interest Earned (%) for Present Value Calculation
Use 4% at this time.
Number of monthly Lease payments      


Step 2: Calculate Buyout at end of Lease Period
Buyout or Fair Market Value of Item @ end of Lease Period  $  


Step 3: Calculate Purchase Vs Lease
Purchase Price  $
Total Payment at Lease Inception (when applicable)  $

(If positive amount, purchase is more cost effective)