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About

For general contractors and trade specialists, the decision to rent or lease small machinery often happens on the fly. Renting offers flexibility for short projects but becomes exponentially expensive over time. Leasing lowers the monthly cash burn but locks you into a contract. This "Rent vs. Lease" calculator is designed for quick field analysis.

The tool calculates the "Breakeven Point" - the specific week or month where leasing becomes financially superior to renting. It includes a database of standard rental rates for common job site assets like skid steers and scissor lifts, allowing for instant comparisons based on project duration.

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Formulas

The breakeven analysis finds t (time in months) where Rental Cost equals Lease Cost.

Rental Cost Function:

Crent = Ratemo × t

Lease Cost Function:

Clease = (Pmtmo × t) + DownPmt

Breakeven (Months):

tbreak = DownPmtRatemo Pmtmo

If tbreak is less than your project duration, Leasing is the better financial option.

Reference Data

EquipmentDaily RentWeekly RentMonthly RentEst. Monthly Lease (3yr)
Skid Steer (Small)$250$750$2,100$750
Mini Excavator$350$1,050$2,800$950
Scissor Lift (19ft)$120$300$800$250
Forklift (5k lbs)$180$500$1,400$450
Compactor$150$450$1,100$350

Frequently Asked Questions

Rent if your project is shorter than 6 months, or if the equipment is specialized and won't be used on the next job. Renting also avoids maintenance costs and storage logistics.
Typically, rentals include maintenance in the rate. Leases do not; you are responsible for oil changes, tracks/tires, and repairs. This calculator assumes a small buffer for lease maintenance to keep the comparison fair.
Yes, rental payments are fully deductible as operating expenses (OpEx) in the year they are incurred, similar to lease payments. The tax impact is usually neutral between the two, so cash flow is the primary decision driver.