Equipment Rent vs Buy Calculator
Enter rental rates and purchase cost to find the break-even point for that machine.
Runs entirely in your browser — your numbers never leave this page.
How it works
Compare annualized cost on both sides:
- Rent: daily rate × days used per year. Simple, no surprises.
- Own: (purchase − resale) ÷ life + annual maintenance/insurance. Depreciation is a real cost even with no loan.
- Break-even: the days-per-year where both cost the same — above it, buy; below it, rent.
- Utilization rule: under ~30 days/year, renting usually wins; over ~60, buying usually wins. The middle is judgment.
- Hidden costs of owning: storage, trailer/transport, and the job that stalls when your machine breaks.
- Tax angle: Section 179 lets many businesses deduct the full purchase price in year one — ask your accountant.
Frequently asked questions
Should I rent or buy equipment?
Above the break-even days/year, buying wins; below it, renting. Occasional use → rent; steady weekly use → buy.
How do you calculate break-even?
Annual ownership cost (depreciation + maintenance) ÷ daily rental rate = days per year where costs equal.
What is the utilization rule of thumb?
Under ~30 days/year rent; over ~60 days/year buy. Between is a judgment call on reliability and availability.
What hidden costs does owning have?
Storage, transport, insurance, and downtime — a broken owned machine stalls your job; a rental gets swapped same-day.
Does Section 179 matter?
Yes — many businesses can deduct the full purchase price in year one, which can swing close calls toward buying.
Should I finance the purchase?
Add loan interest to the ownership side. Financing narrows but rarely flips the verdict unless rates are high.
What about renting to try before buying?
Smart — rent the exact model for a few jobs. You'll learn its real productivity and maintenance appetite.
Does brand affect resale?
Hugely — top brands hold 40–60% after 5 years; obscure brands can drop to near zero. Resale is part of ownership cost.
What if usage is seasonal?
Seasonal spikes favor renting — you pay only for peak weeks instead of owning a machine that sits 8 months.
Can I rent out equipment I own?
Yes — rental income offsets ownership cost, but adds wear, liability, and management. Run the numbers honestly.