Free Business Owner Tool
Lease vs Buy Calculator
Should you buy or lease your building? Enter your numbers and compare monthly cash flow, 10-year total costs, and break-even timing in under a minute.
Calculator Inputs
Live Results
Monthly cost comparison
Lease payment: $8,500
Estimated buy payment: $9,814
10-year total cost
Lease (10 years): $1,020,000
Buy (10 years): $1,297,676
Estimated 10-year extra cost from buying: $277,676
Expected equity (10-year view)
Estimated equity in year 10: $622,839
Uses your appreciation assumption of 2.5% annually.
Break-even month
No break-even point with these inputs.
Down payment: $120,000 | Estimated loan amount: $1,080,000
Connect with an SBA lender - free, no obligation
You can review your calculator results first, then share your details if you want to discuss lender options.
Should I buy or lease my building?
Most business owners start with this exact question. Leasing may preserve cash upfront, while buying may build long-term equity and lower your monthly occupancy cost depending on financing. This lease vs buy calculator helps you pressure-test both paths before you talk to a lender.
When leasing may fit better
You need maximum flexibility, shorter commitments, or the business may outgrow the space quickly.
When buying may fit better
You plan to stay 5+ years and want predictable payments, potential appreciation, and control over the property.
Key decision driver
How quickly ownership costs break even versus rent and how much upfront cash your business can comfortably deploy.
How this calculator works
1) Estimate ownership payment
We use your purchase price, down payment, rate, and term to estimate principal-and-interest payment.
2) Compare 10-year totals
We compare 120 months of rent against your down payment plus 120 months of estimated ownership payments.
3) Find break-even timing
If monthly ownership is lower than rent, we estimate how many months it may take to recover the upfront down payment.
Lease vs buy calculator FAQ
Is it better to buy or lease a building for my business?
It depends on your cash flow, expected time in the property, and financing terms. This calculator helps you compare monthly costs, long-term totals, and break-even timing using your own numbers.
How does break-even month work?
Break-even month estimates how long it may take for lower monthly ownership costs to recover your upfront down payment compared with leasing.
Does this calculator include taxes, insurance, and maintenance?
No. This version focuses on rent versus principal-and-interest payment plus down payment. Use it as a directional estimate before speaking with a licensed lender and advisor.
Can SBA financing lower my down payment?
Some SBA loan programs and lenders allow lower down payments than conventional commercial loans. Terms vary by lender, borrower profile, and property type.
Next tools and guides
Zero-Down Qualifier
See if zero-down financing may be available for your borrower profile.
Complete Buying Guide
Learn the full process of buying owner-occupied commercial real estate using SBA financing.
SBA 504 vs 7(a)
Understand which SBA structure may match your building purchase goals.