Use the Lease Payment Calculator to Evaluate Different Options
Our lease payment calculator helps you evaluate the four common lease options: Residual Value Lease, Dollar Buy-Back, Percentage Buy-Back, and Return Lease. Each option suits different financial strategies and business needs.
Residual Value Lease: This option is ideal when you expect the equipment to depreciate slowly or retain value over time. With lower monthly payments and the flexibility to buy the equipment at its fair market value (typically 10-20%) at the end, it’s best for companies wanting flexibility to upgrade while managing cash flow.
Dollar Buy-Back Lease: This is a straightforward lease-to-own option, where you pay slightly higher monthly payments but own the equipment for $1 at the end. It’s perfect if you’re sure you want to keep the equipment long-term and don’t mind the higher upfront cost.
Percentage Buy-Back Lease (10% Buy-Out): This option offers predictability. You’ll know upfront that the buy-out price will be a fixed percentage, making it easier to plan for the future. It’s a good middle-ground for businesses wanting lower monthly payments but still wanting to own the equipment.
Return Lease: A return lease is ideal when you want to upgrade equipment frequently, especially in fast-evolving industries. You benefit from lower payments but return the equipment at the end of the lease, avoiding ownership.
Related reading:
Pros and Cons of Leasing IT Equipment