Lease or Buy? See Both Paths Side by Side.

Enter a space you could lease and a building you could buy. The calculator shows what each path costs over your time horizon, and what you would own at the end. It does not pick a winner.

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A balanced guide to the decision, with a calculator that lays both paths side by side under your own assumptions. Free; tell us where to send your link.

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Start with the business, not the building

Leasing is not inferior by default, and buying is not always right. The better choice depends on what your business needs over the years you expect to stay, and on what your capital could do elsewhere.

Capital

Buying usually means a down payment, closing costs and money held back for repairs. Leasing usually asks for a deposit and your share of any build-out above the landlord's allowance. Ask what that cash would earn if it stayed in the business.

Flexibility

A lease has an end date and, often, options to renew. Ownership lets you stay as long as you like, but moving means selling or leasing the building out. If your space needs could change quickly, flexibility has real value.

Operational goals

Some businesses need control over improvements, signage or how the property is run. Others are better served by letting a landlord handle the building so the team can focus on operations.

Financing

Loan terms, rates and lender requirements change what buying costs you each month and over time. Talk to your lender early, and treat any estimate here as a starting point for that conversation.

Holding horizon

The longer you expect to stay, the more the comparison can shift. Use the calculator below to test how the two paths look over different time frames under your own assumptions.

Tax treatment, depreciation and financing availability can change the picture. Bring these results to your CPA and lender. This guide is general information, not financial, tax or lending advice.

Lease
Buy
Your horizon

Example values are filled in so you can see how it works. They are not market rates or loan terms.

Over 10 years

Lease

Cash needed at the start
-
Monthly cost, year 1
-
Total paid over the horizon
-
Equity at the end
$0

Buy

Cash needed at the start
-
Monthly cost, year 1
-
Total paid over the horizon
-
Net proceeds if sold at the end
-

Net cost over the horizon total paid, minus anything you get back

Lease-
Buy-

Exhibit: cash out by year

YearLeaseBuy (loan + operating)

Assumptions this comparison makes
  • Lease cost is base rent plus NNN, rising once a year by the increase you enter. No free rent, deposits or build-out.
  • The loan is fully amortizing at a fixed rate and stays in place (or is refinanced on the same terms) for the whole horizon.
  • Owner operating costs rise at the same annual rate as the lease, so both sides inflate alike.
  • The building is sold at the end of the horizon at the value change you enter, less selling costs and the remaining loan balance.
  • Not included: income tax effects, depreciation, the return your cash could earn elsewhere, vacancy if you lease out part of the building, and capital repairs.

An estimate for planning, not financial, tax or lending advice.

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Draft pending brokerage review. General information, not legal, tax or lending advice.