Lease vs Buy Commercial Calculator
Compare the net present cost of leasing versus buying commercial property over a holding period.
Total Lease Cost
$1,719,581.9
Net Buy Cost
$367,657.89
Inputs
SF
$/SF/yr
%/yr
$
%
%
years
years
%/yr
% of value
Comparison
Savings (Better Option)
$1,351,924
Total Buy Outflows
$1,511,529.67
Equity at Sale
$1,143,871.77
Future Property Value
$2,015,874.57
Monthly Mortgage
$7,596.08
Buy Advantage
Yes
Cost vs. Benefit Analysis
How to Use This Calculator
- Enter Space Needed in square feet and Annual Rent per SF plus Rent Escalation % per year.
- Enter Purchase Price, Down Payment %, Interest Rate, and Loan Term for the buy scenario.
- Set Holding Period in years to define the comparison horizon.
- Input Appreciation Rate % and Annual Maintenance % for the ownership cost model.
- Review Total Lease Cost vs. Net Buy Cost over the holding period.
- A lower Net Buy Cost favors purchasing; consider tax benefits of ownership when the difference is close.
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