Purchase or Lease Equipment | Financial Calculators for Flagstar Bank

The interest rate used to calculate your lease payment. Leasing companies may also use a money factor, which is simply the interest rate divided by 2400. To convert a money factor into an interest rate, multiply it by 2400.

Other fees

Any additional fees required to obtain your equipment lease.

Residual value

The percent of the equipment's value that will remain at the end of your lease term.

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Purchase Option
Monthly Payment	Cash Flow	P/L Expense

Lease Option
Monthly Payment	Cash Flow	P/L Expense

Cash Flow and Expense Comparison
Option	Cash Flow	P/L Expense
Purchase Option
Lease Option

Flagstar Bank partnered with Fintactix, a financial education company, to make this calculator available. This is for informational purposes only. The results are hypothetical to illustrate general scenarios. The calculator cannot determine that a specific Flagstar product is available to you or that it is the right solution for your circumstances. All Flagstar Bank products require an application and an approval process. Please contact us directly so we can assist you. Use of this calculator is not a substitute for and results cannot be relied on as investment, legal, tax or accounting advice. Please consult a tax advisor, attorney or other financial professional for personalized advice appropriate to your goals and circumstances. Flagstar Bank and our affiliates are not responsible for any content provided by unaffiliated third parties.

Does it make better sense to buy or lease a new piece of equipment? That depends on several factors, such as the residual value of the equipment you intend to purchase, the amount of money you pay up front as a capitalized cost reduction and the cost of financing. A lease will usually be a more attractive option when compared to an equipment purchase when measured over a comparable term. Keep in mind that with a lease, you will have to return the equipment at the end of the lease term, whereas if you buy, you will own the equipment and will be able to continue driving it after the term expires.