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Rent versus buy equipment

Compare ownership and rental costs for a chosen number of uses and find the break-even point. Drag the graph handles to change inputs and explore the result.

Your inputs

Values shown are editable examples; verify your own measurements and product specifications. Results update as you edit.

≥ 0
≥ 0
≥ 0
≥ 0
≥ 0
≥ 0
0–1,000,000

Calculations run in your browser. Inputs are not saved or sent to analytics.

How it works

  • Net cost of buying = + − + × ; Total rental cost = + ×
  • First whole use where buying costs no more = ceil(( + − − ) / ( − ))
  • Worked example: 300 + 20 − 50 + 10 × 2 = 290; 10 × 30 = 300; ceil(270 / 28) = 10
Input and formula key

Your result

Complete the inputs to see your result.

Assumptions and limitations

Use one currency and a consistent use unit such as one day or job. Costs are linear and resale is deducted once for the entered ownership horizon. Fixed costs apply even at zero uses; resale above purchase can produce a negative net cost. The first whole use where buying costs no more is zero if it starts cheaper, or absent if no such use exists. A higher ownership cost per use can reverse an initial advantage. Excludes financing, taxes, depreciation schedules and uncertain resale.

Sources

Explore this subject: Money & finance

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