Video Production Equipment Calculator: Should You Rent or Buy?
Find Out If Buying Gear Saves You Money, or should you invest it instead!
(With Section 179 Tax Benefits Included)
Retirement Contribution Optimizer
See exactly how much your tax-advantaged savings can grow by retirement
Here's what $10,000 could become by age 65( 30 years from now):
- Investment return: 7% annually (historical S&P 500 average, inflation-adjusted)
- Inflation: 3% annually (reduces cash purchasing power)
- Dividend yield: 1.5% annually on index funds (taxed yearly in brokerage)
- Savings account interest: 2% (taxed as ordinary income)
- Retirement withdrawal tax: Uses your current bracket (typically lower in retirement)
We recommend this allocation based on your specific situation...
The Big Picture
This calculator answers a simple question: over the next 5 years, what's the cheapest way to have this piece of gear when you need it?
It compares three options side by side: rent every time you need it, buy new and sell it later, or buy used and sell it later. The "winner" is whichever option leaves you with the lowest net cost after accounting for taxes, maintenance, and resale value.
How Rental Cost Is Calculated
Rental is straightforward:
The daily rate is based on industry benchmarks. Most rental houses charge around 5% of an item's purchase price per day for cameras, 3% for lenses, 2% for grip gear. These percentages come from surveying actual rental house pricing.
Since rental payments are a business expense, you get a tax deduction. We subtract your tax savings from the total. If you're in a 30% bracket and spend $10,000 on rentals, your actual out-of-pocket is $7,000 after the tax benefit.
How Buy Cost Is Calculated
Buying involves several factors that work in your favor:
Section 179 Tax Deduction
Section 179 lets businesses deduct the full purchase price of equipment in the year you buy it. A $10,000 camera in a 30% tax bracket saves you $3,000 on your taxes that year. That's real money back in your pocket, effectively reducing your cost to $7,000.
Annual Operating Costs
Owning gear isn't free. You'll spend on maintenance (sensor cleaning, repairs) and insurance. We calculate these over your hold period and subtract the tax benefit since they're deductible.
Resale Value
When you're done, you sell it. Different equipment holds value differently:
- Lenses hold value exceptionally well (60-80% after years)
- Cameras depreciate faster due to tech cycles (50-60% after 2-3 years)
- Grip equipment barely depreciates (mechanical gear lasts forever)
- Gimbals and monitors depreciate quickly as new tech emerges
Tax Recapture
The tradeoff with Section 179: when you claimed that deduction, your equipment's "book value" became zero. When you sell, the IRS considers the sale price as taxable income.
This is still a great deal because you got the tax benefit immediately and pay recapture later when inflation has reduced its real value. Plus, you had full use of those savings for years.
Finding the Optimal Sell Year
The calculator runs a year-by-year analysis: "If I sold at Year 1, Year 2, Year 3... which gives the best outcome?"
We balance market value (decreasing each year) against tax recapture (based on sale price). The optimal year is when net proceeds are highest relative to hold time.
- Cameras: Year 2-3 (before next-gen makes yours dated)
- Lenses: Year 7+ (or never, they hold value so well)
- LED lights: Year 3-4 (tech improves quickly)
- Grip: Year 10+ (hold forever)
- Gimbals: Year 2 (fast tech cycles)
New vs. Used: What Changes
Lower Purchase Price
Used gear typically sells for 25-50% below new, depending on category. Lenses hold value better (smaller discount). Grip depreciates more (larger discount).
Slower Depreciation
Here's the counterintuitive part: used gear depreciates slower than new. When you buy new, you eat the steepest depreciation. When you buy used, someone else absorbed that hit. A 2-year-old camera won't lose value as fast percentage-wise.
No Warranty
New equipment includes manufacturer warranties. Used doesn't. We add a buffer for potential repairs in used scenarios.
Same Tax Treatment
The IRS doesn't care if equipment is new or used. You get the same Section 179 deduction either way.
Equipment-Specific Factors
The calculator uses different assumptions for each category:
The Break-Even Point
This shows the usage threshold where buying and renting cost about the same.
The 0.85 factor accounts for ownership overhead (maintenance, insurance) that you don't pay when renting.
Rule of thumb: More than 20-25 days per year? Buying usually wins. Less than that? Renting is typically smarter.
What This Calculator Doesn't Know
- Your specific tax situation: State rules vary. Some don't conform to federal Section 179. Talk to your accountant.
- Opportunity cost: Money spent on gear could be invested elsewhere. We use an 8% discount rate to approximate this.
- Availability: Sometimes you need specific gear on short notice and rentals aren't available.
- Subletting income: If you rent your gear on ShareGrid, that changes the math significantly toward buying.
The Bottom Line
Math favors buying when:
- You use gear frequently (20+ days/year)
- You're in a higher tax bracket
- Equipment holds value well (lenses, grip)
- You're comparing against high rental rates
Math favors renting when:
- You use gear occasionally (<15 days/year)
- Technology is changing rapidly
- You need variety for different jobs
- You don't want maintenance hassles
When the numbers are close, factor in the intangibles: convenience, reliability, and whether you enjoy owning equipment or find it a hassle.
The Retirement Contribution Optimizer
The answer to the question every freelancer and business owner asks: "Where should I put my money to pay the least taxes and grow the most?"
How This Works
This calculator shows you exactly how much to put into each tax-advantaged account (HSA, 401k, IRA) based on your business type, income, and age. Then it shows you what that money becomes by retirement compared to just leaving it in a savings account or regular brokerage.
The Big Picture: Three Scenarios
The comparison section shows the same dollars growing three different ways:
Cash (Savings Account) - Earns 2% interest, taxed every year, loses purchasing power to inflation. This is your baseline "do nothing" option. It almost always loses money in real terms.
Regular Brokerage (Index Fund) - Earns ~7% annually in index funds, but you pay taxes on dividends every year and capital gains when you sell. Better than cash, but tax drag hurts.
Retirement Account - Same 7% growth, but no annual tax drag. Your money compounds faster because Uncle Sam isn't taking a cut every year. Plus, the tax savings from your contribution today can be reinvested, compounding alongside everything else.
The bar chart makes it visual. The "bottom line" tells you the dollar difference.
Age-Based Strategy Recommendations
Your age changes which accounts make the most sense:
Under 35 - We recommend Roth accounts. You're likely in a lower tax bracket now than you will be at your peak. Pay the taxes now, let it grow tax-free for 30+ years, and pay nothing when you withdraw.
35-44 - A balanced mix gives you flexibility. Split between pre-tax and Roth so you can choose which to tap in retirement based on your situation then.
45-54 - Max tax savings now. You're in peak earning years, so every dollar of deduction saves more. You'll probably be in a lower bracket in retirement anyway.
55+ - Same logic, plus you get extra catch-up contribution room. Ages 60-63 get an enhanced catch-up of $11,250 instead of $8,000.
The calculator highlights the recommended strategy based on your age, but you can pick any approach.
Contribution Limits
The IRS caps how much you can put into each account. These limits depend on your age and business income:
Solo 401k Employee Contribution - $24,500 base, plus catch-up if you're 50+. This is money you "defer" from your income.
Solo 401k Employer Contribution - Up to 25% of your W-2 (S-Corp) or ~20% of net self-employment income (Sole Prop). This is your business contributing as an expense. Combined with employee contributions, the total cap is $72,000 plus catch-up.
HSA - $4,400 (self-only) or $8,750 (family) if you have a high-deductible health plan. Add $1,000 if you're 55+. This is the only account with triple tax benefits: deductible, tax-free growth, AND tax-free withdrawals for medical.
IRA - $7,500 base, plus $1,100 catch-up if 50+. Deductibility phases out at higher incomes if you're also covered by a 401k.
The calculator automatically applies these limits based on your inputs.
The Math Behind the Projections
Investment Return - We use 7% annually, which is the historical inflation-adjusted S&P 500 average. This is growth after inflation, so the numbers represent real purchasing power.
Dividend Tax Drag (Brokerage) - Index funds pay about 1.5% in dividends annually. In a taxable account, you pay 15% tax on these every year, reducing your effective return.
Capital Gains Tax (Brokerage) - When you sell, you pay 15% on all gains. This comes off the top of your final value.
Retirement Account Advantage - No dividend tax drag (compounds faster), plus your tax savings today can be reinvested. We assume you put those savings into the same investment, so they compound too.
Withdrawal Tax (Traditional) - Traditional 401k/IRA contributions are taxed when you withdraw. We assume a lower rate in retirement (75% of your current rate) since most people have less income then.
Reading Your Allocation
The breakdown shows exactly where to put your money:
Green progress bars show how much of each account's limit you're using. If you've already contributed this year, enter those amounts in the optional section and we'll calculate your remaining room.
"Room left" tells you how much more you could contribute to each account.
"Why This Order" explains the logic behind the recommended sequence based on your chosen strategy.
The Action Plan
The numbered steps tell you exactly what to do:
- Which accounts to open (if you don't have them)
- How much to put in each
- The deadlines for each contribution type
- What to do if you have money left over after maxing everything
Key Deadlines
401k Employee Contributions - Must be elected by December 31, 2026
401k Employer Contributions - Due by your tax filing deadline plus extensions (as late as October 15, 2027)
HSA and IRA - April 15, 2027 (for tax year 2026)
Assumptions We Make
- 7% annual return (historical average, inflation-adjusted)
- 3% inflation (for cash purchasing power comparison)
- 1.5% dividend yield on index funds
- 15% qualified dividend and long-term capital gains rate
- 8% state tax (approximate average for states with income tax)
- 7.65% self-employment tax savings on contributions (for sole props only)
- Retirement withdrawal at 75% of current tax rate
Fine Print
This is a planning tool, not tax or investment advice. Your actual results depend on market performance, tax law changes, and your specific situation. IRA deductibility has income limits. Roth contributions have income limits (though backdoor Roth is an option). State tax treatment varies. Talk to your CPA and financial advisor before making significant decisions.
Find Your Combined Tax Rate
Enter your income to see your federal + state brackets
Estimated Tax Liability
This is an estimate based on 2025 tax brackets. Actual taxes depend on deductions, credits, and filing specifics. Does not include local taxes, self-employment tax, or investment income taxes. Consult a tax professional for your specific situation.
What's Your Real Tax Rate? If you don't know off hand, use this.
Before you can calculate whether to rent or buy gear, you need to know your combined tax bracket. This matters because Section 179 lets you deduct equipment purchases from your taxable income, and the higher your bracket, the bigger your savings.
A $10,000 camera in a 35% bracket "saves" you $3,500 in taxes.
In a 22% bracket? That's $2,200. The math changes everything.
Quick Guide:
Step 1: Enter your taxable income (that's your gross minus deductions, roughly what you reported on last year's return)
Step 2: Select your filing status
Step 3: Pick your state
Step 4: Look at the green "Combined Marginal" number. That's your rate. Plug it into the Rent vs Buy calculator above.
Pro tip: If you're a business owner expecting a big year, use your projected income. Equipment purchases made before December 31st can offset this year's taxes, so timing matters.
