Compare the after-tax cost of financing vs leasing your next piece of construction equipment in under a minute. Built for contractors. Not a CPA-grade tool — but enough to know which way the math leans before you sign anything.
Sovyrn Advisory · Equipment Capital ToolsEquipment
If you finance and buy
If you lease (operating lease)
Tax
Affects when tax savings hit your cash flow, not the total. Year 1 deduction lands big when checked.Buy & Finance
Operating Lease
What this calculator skips
Section 179 phase-out limits ($2.89M+ purchases), NPV/time value of money, MACRS depreciation schedules in detail, your state-specific tax treatment, and the option value of fleet flexibility. For a CPA-grade analysis tuned to your actual deal and tax position, talk to us.
Want a structured analysis?
Sovyrn Advisory will model the structure tuned to your tax position, fleet utilization, and the specific equipment. Then we hand the execution to Caliber.
Apply through Caliber 5-minute intake. No pitch deck required.How this calculator works
For the Buy & Finance path, we amortize a standard equipment loan over your use period at the rate and down payment you specified. Total cash out includes the down payment plus all loan payments. Tax savings combine the depreciation deduction (full equipment value, taken over the use period) and interest deduction. Resale value at the end is subtracted because you own the asset. After-tax cost is what the equipment actually costs you net of all benefits.
For the Operating Lease path, we treat lease payments as a fully-deductible operating expense (which is how the IRS treats true FMV/operating leases). There’s no resale value because you don’t own the asset. After-tax cost is total payments minus the tax shield.
How to use the verdict
The verdict gives you the directional answer. But the dollar gap matters less than the underlying drivers. If buying wins by $20,000 over five years but you’re cash-tight today, the lease’s lower out-of-pocket may be the right call. If leasing wins by $5,000 but you want to build equity in your fleet, owning may still be the right strategy. Run the calculator. Then talk to your CPA — or talk to us.
Want the framework behind these numbers?
See Equipment Financing vs Leasing: A Construction Owner’s Decision Framework for the four-question diagnostic we use when sitting down with a contractor to structure equipment capital. It covers TRAC leases, Section 179 strategy, the $1 buyout vs FMV distinction, and when each path actually wins.