How to use this calculator
Compare costs over the same holding period. Buying ties up capital and carries repair and resale risk. Renting trades those risks for a usage-based bill. Convert daily or weekly quotes to a rate per actual productive hour, including minimum rental periods.
The formula
Owned total = purchase × (1 + purchase tax) − resale + holding-period interest + years × (insurance + property tax + storage + hours × (energy + maintenance)). Rented total = years × (hours × rental rate × (1 + rental tax) + delivery).
Financing: purchase tax is financed after the down payment. Interest is summed on the declining balance for the shorter of loan term and holding period. Outstanding principal is a liability at resale; principal is not counted again because acquisition is already included. No opportunity cost or present-value discounting is modeled.
What to keep in mind
Positive savings favors owning on modeled cost. It does not establish availability, reliability, or affordability.
Use consistent nominal USD values. Taxes default to zero because rates and exemptions vary. Supply applicable sales and property taxes from your jurisdiction. Income tax deductions and credits are excluded. Rental energy and maintenance are assumed included in the entered rental rate; add any renter-paid costs to that rate.