BUSINESS OWNERS · FREE TOOL
Lease vs. Buy
Should your business keep leasing or buy the building? NPV, break-even year, equity built.
The decision almost every growing Texas business faces eventually. This compares the true cost of continuing to lease against buying — after down payment opportunity cost, appreciation, equity build, and the proceeds when you eventually sell.
Your numbers
Pre-filled with realistic DFW-market estimates. Change anything — results update as you type.
SBA 504 owner-occupied deals often go as low as 10%.
Every input is saved in the link — text it to a partner and they'll see the exact same scenario.
BUYING PULLS AHEAD IN
Year 1
over a 10-year horizon
NPV — buy
-$1,425,720
discounted at 6.0%
NPV — lease
-$2,221,210
discounted at 6.0%
Total lease cost
$3,049,848
Total ownership outlay
$2,859,453
Net cost of ownership after sale
$1,501,771
Equity at end of horizon
$1,475,946
Projected value at exit
$2,956,616
Net sale proceeds
$1,357,681
Annual debt service
$162,198
Cash to close
$330,000
First-year lease cost
$276,000
Effective lease rate today
$23.00/SF
Over 10 years, buying is worth about $795,490 more in today's dollars than leasing.
Want this as a clean one-page PDF you can send to your lender?
Branded, dated, every input and output laid out. Downloads instantly and lands in your inbox so it's easy to forward.
Questions people ask
How long do I need to stay for buying to make sense?
As a rule of thumb, seven to ten years. Below that, closing costs, financing costs and selling costs usually outweigh the equity you build.
Can I buy my building with 10% down?
Often, yes. SBA 504 financing for owner-occupied commercial property regularly allows 10% down for qualifying businesses occupying at least 51% of the space.
Numbers are a starting point.
Thirty years in DFW and Austin means I know which of these assumptions the market will actually support. Send me your scenario and I'll tell you straight.
Other tools
BUYERS & INVESTORS
Quick Deal Screener
Cap rate, cash-on-cash, DSCR and break-even occupancy in about 45 seconds.
BUYERS & OWNERS
Mortgage & Amortization
Full payment breakdown, year-by-year amortization, balloon balance, and what extra principal actually saves you.
TENANTS
True Occupancy Cost
What that quoted rate actually costs you — after load factor, NNN, free rent and escalations.