Loan calculatorsLease or own your business property?
Compare the occupancy costs, cash required and financial position over the same period.
Your assumptions
Start with your figures. Samples are shown below.
Closing costs and fees $35,000 paid upfront
Use your estimate or lender quote. No current SBA fee schedule is assumed.
Growth and eventual sale assumptions
Annual property appreciation starts at 0%. A hypothetical sale at the chosen horizon deducts selling costs and outstanding debt. Longer horizons depend more on your assumptions.
Private to this tab. Figures stay while you switch calculators; reloading or leaving the loan calculators clears them. Nothing is sent to AWG.
Your results
Higher initial monthly outlay, lower modeled net cost after sale.
Illustrative inputsMonthly ownership outlay
$13,371
Initial loan payment + entered property expenses
Closing costs paid in cash: $35,000 (planning allowance) · Annual appreciation: 0% assumption
Cash required upfront
$185,000
Contribution + closing costs
Property equity at year 10
$396,097
Before selling costs; includes your contribution
Owning costs less over 10 years
$138,937Nominal, pre-tax; after a hypothetical sale, selling costs and debt payoff.
Loan and cost details
- Current monthly lease outlay
- $12,000
- Initial monthly difference
- $1,371 more to own
- Closing costs paid in cash
- $35,000 (planning allowance)
- Annual property appreciation
- 0% assumption
- Loan term
- 25 years
- Selling costs at exit
- 6% of property value
Equity includes contributed cash, principal repaid and assumed value change; it is not profit.
Explore leasing and ownership over time
Occupancy cost over your chosen period
View chart data
| Date | Lease cash outlay | Own, after sale equity |
|---|---|---|
| Today | $0 | $125,000 |
| Year 1 | $144,000 | $269,124 |
| Year 2 | $292,320 | $412,405 |
| Year 3 | $445,090 | $554,727 |
| Year 4 | $602,442 | $695,965 |
| Year 5 | $764,516 | $835,980 |
| Year 6 | $931,451 | $974,619 |
| Year 7 | $1,103,395 | $1,111,717 |
| Year 8 | $1,280,496 | $1,247,092 |
| Year 9 | $1,462,911 | $1,380,546 |
| Year 10 | $1,650,799 | $1,511,862 |
Annual lease increase: 3%. Annual ownership cost increase: 2%. Annual property appreciation: 0%. Selling costs at exit: 6%. Edit these under Growth and eventual sale assumptions.
| Measure | Lease | Own |
|---|---|---|
| Initial monthly outlay | $12,000 | $13,371 |
| Cash required at purchase | Not modeled | $185,000 |
| Total cash paid over 10 years | $1,650,799 | $1,817,960 |
| Property value at comparison date | — | $1,500,000 |
| Debt remaining | — | $1,103,903 |
| Property equity before sale costs | — | $396,097 |
| Net sale proceeds after payoff | — | $306,097 |
| Nominal net cost after hypothetical sale | $1,650,799 | $1,511,862 |
After the modeled sale, ownership has $138,937 lower nominal cost over 10 years, including cash outlays and net sale proceeds. Equity is an asset position, not the same as operating cash or profit from owning. Taxes, lease deposits and fit-out differences remain outside this illustration.
Where the equity comes from
At year 10, debt repayment adds $246,097 to property equity, with +$0 from your value assumption.
Your initial contribution is already your money; principal repayment converts cash to property equity. Equity is one part of net worth. Cash tied up in the property, sale costs and the lease alternative still matter.
Assumptions and limitations
AWG is an SBA financing advisor and placement firm, not a lender. Financing is subject to eligibility, lender underwriting and approval. These figures are illustrative, not an offer or approval.
- All rates and fees are your assumptions. No current rate feed, SBA fee schedule or automatic eligibility decision is used.
- Loans use constant rates, monthly amortization and end-of-month payments. Lender day counts, rounding and payment dates can differ. Calculations retain full precision; displays use whole dollars and CSV schedules use cents. Summing rounded rows can differ from model totals.
- Unknown costs are excluded, visibly marked incomplete and identified in reports and exports. Known costs remain included. Financed costs increase principal and are not also deducted as cash paid at closing.
- Refinance compares the same starting debt, payments and debt remaining at the same date. Lower payments can increase full-term cost.
- Property results include a hypothetical sale with selling costs and debt payoff. Taxes, lease deposits and fit-out differences are excluded.
- Only the labeled acquisition comparison models interest-tax effects. It assumes a fully usable same-period deduction; principal and fee deductions are excluded. Other results are pre-tax.
- Seller notes remain separate debts, with entered standby, accrual, amortization and maturity assumptions. Their terms and equity treatment require lender and legal review. Bank balloons, variable-rate resets and complex multi-loan structures are excluded.
- Inputs remain in this tab’s memory while you switch calculators. Reloading or leaving the loan calculators clears them. They are not submitted, stored in your browser or attached to an inquiry. A download stays under your control.
Questions, answeredRead the assumptions.
Is property equity the same as profit from ownership?
No. Equity includes your original cash contribution, principal repaid and any assumed change in property value. A sale also incurs selling costs and debt payoff. The tool separates those amounts from the overall cost comparison with leasing.
What does the 25-year comparison assume?
It extends your entered rent increases, ownership-cost increases and property-value assumptions over 25 years and includes a hypothetical sale at that date. Longer comparisons depend more heavily on those assumptions. Appreciation starts at zero and remains editable.
Does this model a complete SBA 504 financing structure?
No. It models one amortizing property loan. A multi-loan 504 structure, taxes, lease deposits, fit-out differences and future variable-rate changes are outside this illustration. AWG reviews the property and operating business before assessing a financing structure.