Lease vs Buy Property Calculator

About this calculator

The lease-versus-buy decision for a commercial property compares the total cost of renting a space over a chosen time horizon against the total cost of purchasing it, including the down payment, mortgage payments, and any financing costs, against the cumulative rent payments over the same period. Because buying ties up capital upfront in a down payment while leasing spreads cost as ongoing rent, the two options only become directly comparable when evaluated over an identical number of years.

Business owners, commercial real estate brokers, and CFOs use this comparison when deciding whether to occupy a retail storefront, office, or warehouse: leasing preserves capital and flexibility to relocate, while buying builds equity in the property and can be cheaper long-term if the business plans to stay put for many years, though it carries the risks and responsibilities of ownership such as maintenance and property tax.

This calculator totals the cost of leasing versus buying a commercial space over your chosen number of years, incorporating down payment and mortgage payments, so you can see which option costs less over your planned occupancy horizon.