Work out lease vs buy equipment instantly with clear inputs, formula shown and shareable results.
Lease versus buy is a discounting question: compare the purchase price paid today with the present value of the lease payment stream at your cost of capital. Only if the present values are close do the softer factors — obsolescence risk, covenant headroom, balance sheet treatment — decide it.
Present value of lease
PV = sum of Annual payment / (1 + r)^t for t = 1..n
Decision rule
Buy if PV(lease) > Purchase price; lease if lower
Yes if you will own an asset with real resale value at the end. Subtract the discounted residual from the purchase cost.
Your marginal borrowing rate is the usual choice, because leasing is a financing decision rather than an investment decision.