MoneyMetric.io / Guides
Equipment Leasing vs. Buying: Which Saves More Money?
By Eric Bonnette • Updated 10/31/2025
MoneyMetric.io is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Learn more on our Disclosure page.
Example — bakery oven
Jamie owns a bakery and needs a commercial oven.
| Option | Upfront | Monthly | Term | Total Cost | Ownership |
|---|---|---|---|---|---|
| Lease | $0 | $450 | 36 months | $16,200 | No |
| Buy | $12,000 | $0 | — | $12,000 | Yes |
Result: Leasing keeps more cash available now, but buying saves $4,200 in the long run.
Car Lease vs Buy Calculator: Compare total cost over your time horizon, including payments, taxes, and mileage overage. Make an informed decision between leasing and buying your next car. Open Car Lease vs Buy Calculator
Tax angle
When buying, you can often deduct depreciation or use Section 179 to expense part or all of the purchase (subject to IRS limits). Leasing payments are generally fully deductible as regular expenses.
Compare insurance for leased or purchased equipment