Own vs. lease analysis

Purchase price and acquisition costs

Price plus closing, due diligence and other entered costs are paid at month 0.

Down payment and financing

The loan equals price less down payment. Debt service is counted once; principal is not added again.

Interest rate and amortization

Level monthly payments from the entered rate and amortization. Balances due at maturity refinance at the entered terms.

Taxes, insurance and maintenance

Owner operating costs are paid monthly and escalate annually at the entered rates.

Capital expenditures

Repairs, replacements and reserves are counted when entered to occur.

Appreciation and exit value

The property value grows at the entered appreciation rate to the end of the hold period.

Selling costs

Sale proceeds are reduced by selling costs and any remaining loan balance.

Hold period

Both paths are compared over the same analysis period you select.

Lease costs and rent escalation

Base rent, recoveries and other lease costs follow the entered lease terms and annual increases.

Operating expenses

Expenses the tenant pays under the lease are included on the lease side.

Discount rate and opportunity cost

Your discount rate reflects the return your capital could earn elsewhere and is used to compare both paths in today's dollars.

Equity accumulation

Principal paydown and appreciation show up as sale proceeds or retained equity at the end of the period.

Cash flow and net present value

Monthly cash flows are discounted and summed; the lower present cost is the economic advantage.

Sensitivity analysis

Stress tests change one assumption at a time, such as sale price or rates, to show how the result shifts.

User-entered assumptions

Every figure is labeled as entered, default or example. Results are only as reliable as the inputs.

This tool is provided for informational and analytical purposes only. Results are estimates based on user inputs and stated assumptions. DealMeasure does not constitute legal, tax, accounting, lending, investment, or other professional advice. Commercial real estate transactions vary, and users should independently verify material assumptions before making decisions. Use of DealMeasure alone does not create a brokerage or advisory relationship.