Commercial real estate
Commercial Lease vs. Buy Calculator
Compare simplified occupancy costs over a selected term. Replace every default with figures that apply to your property and location.
Calculate your result
What this calculator estimates
Compare simplified occupancy costs over a selected term. It combines the inputs below to produce Lower estimated net cost. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces $1,002,892. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- First-year lease occupancy cost — sample input: 180000 currency units
- Annual lease increase — sample input: 3 %
- Purchase price — sample input: 2200000 currency units
- Down payment — sample input: 550000 currency units
- Annual mortgage and ownership costs — sample input: 190000 currency units
- Annual appreciation — sample input: 2 %
- Comparison term — sample input: 7 years
How to interpret the result
Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
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Reviewed 2026-09-08.