Does a lower monthly payment always mean the loan or lease is cheaper overall?

No. A lower monthly payment can result from a longer term, which increases total interest or lease charges paid. The comparison shows both the monthly payment and the total paid over the term so you can weigh immediate cash flow against total cost.

What if my lease term is different from my loan term?

Enter the loan term in months that matches your lender's quote. The tool uses that same term length to compute lease total cost for an apples-to-apples comparison. If your lease quote covers a different period, adjust the loan term field to match it.

Does this account for the buyout price at the end of a lease?

No. The comparison covers monthly payments and totals paid during the term. Many equipment leases include a buyout option or return clause at the end. Factor any buyout cost separately when deciding between ownership through a loan and returning leased equipment.

Equipment Financing Comparator

Cash flow kills more buys than interest rate.

Inputs

Equipment price ($)

Loan APR (%)

Loan term (months)

Lease monthly ($)

Lease term (months)

Compare monthly payments between financing a piece of cleaning equipment with a loan versus leasing it. Enter the equipment price, loan terms, and the lease quote you received to see which option costs less per month.

Instruction

Enter the equipment price and the loan APR and term your lender quoted.
Enter the monthly lease payment from your lease quote.
Read which option delivers the lower monthly payment and compare total costs over the term.

Worked example

A contractor prices a $35,000 floor scrubber with a loan at 7.5% APR over 60 months and receives a lease quote of $650 per month.

The tool computes the loan monthly payment and displays which option costs less per month, along with the total amount paid under each arrangement over 60 months.

Questions operators ask

Does a lower monthly payment always mean the loan or lease is cheaper overall?: No. A lower monthly payment can result from a longer term, which increases total interest or lease charges paid. The comparison shows both the monthly payment and the total paid over the term so you can weigh immediate cash flow against total cost.
What if my lease term is different from my loan term?: Enter the loan term in months that matches your lender's quote. The tool uses that same term length to compute lease total cost for an apples-to-apples comparison. If your lease quote covers a different period, adjust the loan term field to match it.
Does this account for the buyout price at the end of a lease?: No. The comparison covers monthly payments and totals paid during the term. Many equipment leases include a buyout option or return clause at the end. Factor any buyout cost separately when deciding between ownership through a loan and returning leased equipment.