BOLLARDCommercial Capital

04Calculator

Lease versus own

The question every business owner in leased space eventually asks. Escalating rent on one side; a payment, an owner's costs and an asset you keep on the other. The honest answer is a year number, and sometimes it is never.

  • Break-even year
  • Cumulative rent against net ownership cost
  • Equity built
  • Every assumption on screen

Illustrative only. Bollard is a fictional business built as a website demonstration — the figures below are worked examples, not an offer, a quote or a rate sheet.

Your figures

The lease you are in

The building you would buy

The answer

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Rent paid over the horizon

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Net cost of owning

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Equity at the horizon

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Cumulative

Rent against the net cost of ownership

RentOwn, net of equity

Two cumulative cost lines: rent rising steadily, and the net cost of ownership after equity is credited back

The ownership line credits back the equity you would hold if you sold at that year, after selling costs. That is why it can fall below the rent line even while the payments are larger.

Year by year

The whole comparison

YearRentOwn, cash outLoan balanceEquityAdvantage

Send this result

Every input on this page lives in the address bar, so the link below reproduces exactly what you are looking at.

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Nothing is actually sent from this demonstration. The button beside it opens your own mail client with the link, which is the honest version.

Assumptions and limits

What this model does and does not do

Rent escalates annually at the rate you set and the tenant pays the NNN load in both scenarios, because an owner pays those costs too. Owner ops is what an owner carries that a tenant does not — roof, structure, capital repairs, management.

Ownership equity is the property value at that year, less selling costs, less the loan balance. Crediting it back is what makes this a like-for-like comparison rather than a payment comparison.

No tax treatment is modelled — no depreciation, no interest deduction, no capital gains, no 1031 exchange. Those effects are real, they are specific to your situation, and they belong with your accountant rather than in a public calculator.

Appreciation is an assumption, not a forecast, and it can be set negative. If a small change in that one slider flips the answer, the answer was never robust.

Deal intake

Have someone check your numbers

Send the scenario and a real desk would come back with the two or three structures worth pricing.

This is a demonstration site. Forms validate and confirm on screen; nothing is transmitted, emailed or stored.

The other five

01504 stackWhat does a three-part capital stack actually cost me each month?02Loan sizingHow large a loan does this property actually support, and which test stops it?03AmortisationWhat is left on the day this loan matures?05Carry costWhat does short-term money cost me before the take-out?06RefinanceDoes this refinance pay back before I sell or mature?

Next bay

Model it, then let someone check it

Calculators answer the arithmetic. What they cannot tell you is whether a lender will believe your net operating income, or which programme your equity actually supports.

Submit a deal scenario Work the numbers first

Or call the desk

(816) 555-0142

Monday to Friday, 8am – 6pm Central

A demonstration number in the range reserved for fiction. It does not ring anywhere.