Lease VS. Buy Comparison Tool

Have a go with our lease v buy comparison tool, using a basic example to get a quick comparison and then get in touch with one of our team to discuss your needs and the different options in further detail.

Overview

For the sake of simplicity, we have fixed the payment frequency at monthly, and the term at 3 years.

Enter the total value of the assets you want to purchase

Enter Your WACC ²
%
Choose your IFRS 16 treatment³

Lease Terms

Payment Frequency
No. Payments p.a.
Term (years)
Total No. Payments
Quadrent Interest Rate ¹	1%
Monthly Payments

Notes:

Quadrent can offer lower interest rates because we invest the Fair Market Value upfront when purchasing the assets for you to lease. This makes the overall cost of the assets lower for you, and is reflected in a lower interest rate.
WACC (Weighted average cost of capital) needs to be applied when analysing any new project or financial investement. It is the average rate that you pay to finance all assets across your business. It is calculated by averaging the rate of all your company's sources of capital (both debt and equity), weighted by the proportion of each component.
If the lease is treated as an ROU asset, the annualised cost will be split across your balance sheet's depreciation and interest costs (based on your WACC). If treated as Low Value, the annualised cost will come out of your income statement as an operating expense.

Annualised costs

	Lease	Buy
Depreciation
Interest/WACC
Total p.a.

Cost at the end of the assets' life within your organisation

End of life costs (e.g. collection, transport, data erasure and recycling)⁴
Total cost
Total saving
% Saving

Notes:

All end of life costs are included in your lease payments.

Cashflow across the term

	Lease	Buy
Year 1
Year 2		$0.00
Year 3

NPV at Day 1⁵
IRR (Internal rate of return)

Notes:

How much this investment is worth throughout the term, discounted to today's value.

Amortisation Schedule

Summary

Laptop buy price
Payment Frequency	Monthly
No. payments p.a	12
Term (years)	3
Total no. payments	36

Lease

Buy

Term cost

End of life costs

Total term cost

Term Saving

% saving

Interest Rate

1.0%

N/A

WACC

N/A

Payment

36 Month Rate Calculations

Lease

Buy

Month	Opening	Principal	Interest	Closing		Opening	Principal	Interest	Closing