Copperline Loans built this lease vs buy equipment calculator for owners in Mount Vernon, WA and Skagit County, WA pricing a mower, a loader, an oven or hotel laundry. The calculator prices the purchase as a loan; the sections below work through FMV and $1 buyout leases by hand. Every figure is arithmetic on what you enter; a partner sets actual terms.
What the Calculator Returns
Three figures come back for the loan side: the estimated monthly payment, the total interest over the term and the total cost with the down payment counted. The total cost is the figure to set against a lease's total payments plus any buyout.
Rates and terms are your assumptions. Fees are not included; a partner's offer states its own.
FMV lease math in Mount Vernon, WA: residuals and end-of-term options
At the end of a fair market value (FMV) lease, the business returns the machine, renews, or buys it at whatever it is worth then. The payments are lower than a loan's because the lessor expects the equipment to keep a residual value.
Illustration only, invented figures: a $40,000 machine on a 36-month FMV lease at $1,010 a month costs $36,360 in payments (our arithmetic). Buying it at the end at an assumed $8,000 market value brings the total to $44,360. Compare that with the loan total from the calculator.
Equipment loan calculator for a Mount Vernon, WA landscaper's mower quote
Illustration only, invented figures: a landscaper enters a $19,500 mower, nothing down, 48 months and an assumed 11% rate. The calculator shows about $504 a month and about $24,191 in total (our arithmetic).
Try 36 and 60 months on the same quote to see the trade between payment and total. The landscaping page covers trailers and skid steers.
$1 buyout lease calculator in Mount Vernon, WA: a hotel laundry example
Illustration only, invented figures: a hotel's laundry package on a $1 buyout lease at $715 a month for 48 months costs $34,321 including the buyout (our arithmetic). A $30,000 loan for the same package over 48 months at an assumed 10% annual rate would be about $761 a month and $36,522 in total (our arithmetic). The lower-cost route is whichever total is lower after fees.
The hotel loans page covers FF&E and laundry.
Markup vs margin for a Skagit County, WA home builder pricing a job
Markup and margin are two ways of describing the same profit. Markup is profit divided by cost; margin is profit divided by price. A builder who adds a 20% markup to cost earns less than a 20% margin on the price.
Illustration only, invented figures: a $300,000 job cost with a 20% markup gives a price of $360,000 and a margin of 16.7% (our arithmetic). Partners reading a builder's file look at margin on the tax returns, so price jobs knowing which figure you are using.
Inputs to Gather Before You Run It
- The quote's price, with attachments and installation if financed.
- Any down payment or trade-in.
- An annual rate to test.
- A term in months to test.
Also worth opening: the guides and calculator, equipment financing and the request form.
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