Trade Reality Check
Hire or Buy Plant Calculator
See roughly when buying starts to cost less than hiring — and what the difference could mean over the years you expect to own it.
Keep the figures on the same basis. If you normally claim VAT back, use prices without that VAT. If you don’t, use the full price you pay.
Hiring
Use the rate you actually tend to pay. If you hire weekly, divide the hire charge by the number of days you have it.
We use this with your annual hire days to estimate what delivery normally adds to each day you use the equipment.
Buying
Use the price you would actually expect to pay.
Choose the period you want to compare.
A rough estimate is fine.
Use a rough annual total. Leave at £0 if negligible.
+ Include finance cost
Use the finance agreement's total charges if you know them. Leave at £0 if buying outright.
Your hire vs buy sense-check
BUYING LOOKS CHEAPER
14 days/year
Buying starts to cost less than hiring at roughly this level of annual use. You expect to use it about 30 days/year.
The break-even point assumes your usual pattern of hire periods and delivery or collection costs stays broadly similar as your usage changes.
This is a simple pre-tax business sense-check using your own estimates, not accounting or tax advice. It doesn’t adjust for when payments happen, and tax, VAT, capital allowances and the actual timing of repairs or resale values can change the full financial picture.
A free tool from SmartTradie
How the calculator works
Hiring uses your typical hire cost, expected days of use and delivery or collection costs. Buying spreads the amount you expect the equipment to lose in value across the years you keep it, then adds annual ownership costs and any finance charges you enter. This gives a simple annual equivalent so the two options can be compared on the same basis.
Why it is worth knowing
The cheapest option is not always the one with the lowest headline price. Hiring avoids tying up money in equipment you rarely use, while buying can become cheaper once usage is high enough. The break-even figure gives you a practical point to compare with how often you genuinely expect to need the machine.
This is a simple pre-tax business sense-check using your own estimates, not accounting or tax advice.