Free tool
Equipment: buy or rent?
By Umair Nawaz, founder of Lirevon Updated How we test tools
Pick a machine, then type in your own quotes. See the yearly cost of owning against renting, and how many days a year you need it before buying wins. The starting numbers are placeholders, not checked prices.
Related: chipper · stump grinder · fixed cost · Lirevon for growing tree companies.
Owning it
Renting it
Yearly cost, estimated
Own it
–
Rent it
–
Break-even days per year
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Monthly loan payment
–
Loss in value per year
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Yearly cost by days used
- Own
- Rent
- Your days
How the math works
- Loss in value per year = (purchase price − resale value) ÷ years you keep it.
- Interest per year = all loan interest paid while you own it ÷ years you keep it. The loan is the price minus the down payment, paid off monthly over the term.
- Yearly cost of owning = loss in value + interest + maintenance + insurance.
- Yearly cost of renting = days per year × (day rate + extras).
- Break-even days = yearly cost of owning ÷ (day rate + extras).
- Fuel and the operator cost the same both ways, so they are left out. Taxes are left out too.
Questions about buying vs renting
Is it better to buy or rent a bucket truck?
It depends on how many days a year you use it. Owning has a mostly fixed yearly cost. Renting costs a set amount per day. If you need it more days than the break-even number this tool shows, buying usually costs less per year. If fewer, renting usually does.
What does "break-even days" mean?
It is the number of days per year where owning and renting cost the same. The tool works it out as the yearly cost of owning divided by the rental cost per day.
Why does the tool use loss in value instead of loan payments?
A loan payment mixes paying back the price with paying interest. The real yearly cost is the value the machine loses (purchase price minus what you sell it for, spread over the years you keep it) plus the interest. The tool also shows the monthly payment so you can check cash flow.
Where do the starting numbers come from?
They are placeholders so the tool shows a result straight away. They are not prices we checked. Get a dealer quote, a rental quote and an insurance quote, then type in your own numbers.
Are fuel and the operator included?
No. You pay for fuel and an operator whether you own or rent, so they cancel out in the comparison. If a rental includes delivery or a damage waiver, add that in the rental extras box.
What about the time lost picking up and returning rentals?
That is a real cost. If a rental takes an hour of crew time to collect, add that cost per rental day to the rental extras box. You can find your crew cost per hour with the crew day rate calculator.
Should I count tax write-offs?
Depreciation and interest can lower your taxes, and rental costs are usually deductible too. The effect depends on your situation, so ask your accountant. This tool compares costs before tax. Short explanation, not tax advice.
Is anything I type sent to Lirevon?
No. The math runs in your browser. Your numbers are only kept in this browser on this device so the form is filled in next time.
Is it cheaper to rent or buy a chipper?
It depends on how many days a year you chip. Owning has a mostly fixed yearly cost, renting costs per day. Enter your own dealer quote, insurance and rental price in this tool and compare your days with the break-even days.
How many days a year do I need to use a machine before buying makes sense?
Use the break-even number the tool shows: yearly cost of owning divided by rental cost per day. If you will use the machine more days than that, owning usually costs less per year. If you are close, think about cash flow and how easy rentals are to get when you need them.
Machines pay off when they work
More booked days, cheaper machines.
Every extra job spreads your equipment cost thinner. Lirevon helps tree companies book more of the calls they already get, with missed-call text-back, an AI receptionist and follow-ups.