Lease vs. Purchase Calculator (NPV Analysis)

Lease vs. Purchase Calculator

Compare the after-tax costs of leasing vs. buying an asset using Net Present Value (NPV) analysis.

Common Information

Client Name Equipment ID / Description Asset Cost / FMV Analysis Term (Years) Corporate Tax Rate (%)

Discount Rate (%)

Tip: Use the loan interest rate for an accurate comparison.

Estimated Salvage Value (at end of term)

Down Payment One-time Fees Monthly Payment Annual Op. Costs Residual / Buyout

Down Payment Capitalized Costs Loan Interest Rate (%) Annual Op. Costs CCA Class Rate (%)

Total Outflows (Payments & Costs):

Total Tax Savings:

Net Cost of Leasing:

Net Present Value (NPV):

Total Outflows (Payments & Costs):

Total Tax Savings (Interest & CCA):

Net Cost of Purchasing:

Net Present Value (NPV):

Based on the Net Present Value of after-tax cash flows. The lower NPV is the more favorable option.