Should you buy or lease that equipment?

The purchase price of the equipment before tax and fees, as quoted by the dealer. Use the same price on both sides of the comparison.

Your local sales tax rate on equipment, as a percent. It appears on any recent invoice from a local supplier, or on your state revenue website.

Cash you would put down if you bought. A bigger down payment lowers the loan payment but takes money out of the account today.

How many months you are comparing, the same for both options. A 60-month loan against a 60-month lease keeps the numbers side by side.

The yearly rate on the equipment loan, from your bank or the dealer's financing offer. Use the APR if the offer shows one.

The yearly rate built into the lease. If the quote shows only a monthly payment, ask the lessor for the rate or the money factor behind it.

The percent of the original price you would pay to buy the equipment when the lease ends. The lease quote calls this the residual or buyout.

What the equipment would fetch as a percent of its price if you owned it and sold it at the end of the term. Check recent used listings.