rent-vs-buy-calculator

Rent or Buy – How to get the most value from this calculator

This calculator helps you make a decision that is often underestimated in daily life: It isn't just the purchase price alone that decides, but the total costs over the service life. When renting, costs seem small because they occur per event/day – but they add up quickly if you plan regularly. With buying, it's the opposite: It feels expensive at the start, but afterwards, the costs are distributed over many uses. This is exactly where the calculator comes in: It compares nominal total costs (simple addition) and additionally the Net Present Value (NPV), which is a more realistic view if you could invest that money elsewhere with interest.

First, enter the Purchase Price. This is everything you actually have to pay to own the device or set. Then comes the part many forget: Maintenance/Service (e.g., checks, spare parts), Insurance (theft, damage), and Storage/Space Costs. Storage costs aren't just "rent for the warehouse" – even a full basement has a price because it blocks space. Finally, enter the Resale Value. Especially with event technology or machines, resale can recover a large part of the purchase price. The calculator subtracts the resale value at the end because you get that money back.

On the rental side, it is crucial that you don't just consider the "pure" rental price. That's why there are Extra Costs per Rent: Transport, delivery, setup, teardown, cleaning, or additional cables/adapters. Depending on the provider, these items are separate, flat-rate, or already included – enter what is realistic in your case. Then select Events/Days per Year and the Service Life. This allows the calculator to simulate how often you really have usage in the coming years – and shows you immediately how strongly the decision depends on the frequency of use.

The Break-even value is your "Aha moment": It tells you from how many uses per year buying becomes nominally cheaper than renting. If your realistic value is below this, renting is usually smarter – you remain flexible, have less risk, and don't have to worry about maintenance. If your value is significantly above, buying is often more economical. And that's exactly why the NPV (Net Present Value) is there too: If you assume, for example, 6% cost of capital, this means: Money you spend on the purchase today could alternatively yield a return. NPV makes this opportunity visible. Result: Sometimes buying looks better nominally, but the NPV tips the scale in favor of renting – or vice versa.

Note: This calculator provides a sound orientation, but constitutes no financial or tax advice. When it comes to depreciation, input tax, or financing, a tax professional can find additional optimizations.

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