Is it cheaper to buy or lease home security equipment?

Over 10 years, buying is almost always cheaper. The break-even point is typically 36 months: a $1,000 equipment purchase plus $25/month monitoring matches a $40/month all-in lease at month 36, then saves $15/month forever after. Over 10 years that is roughly $1,800 in your pocket.

When does leasing actually make sense?

Three real cases: (1) you only plan to live in the home 1-2 years and want zero upfront cost, (2) you want guaranteed equipment replacement for the life of the contract, (3) the leased equipment includes premium professional installation you would otherwise pay for separately. Outside those three, buy.

Who owns the equipment in a leased setup?

The security company, almost always. That means if you cancel, the equipment is removed (or you pay the buyout). It also means the company can refuse to allow self-monitoring, refuse to integrate with third-party platforms, and brick the system if you switch providers.

What about 'free equipment' offers?

Almost always financing in disguise. The bundled monthly typically hides a 36-60 month consumer loan from a third-party lender (Citizens Pay, Fortiva, etc). Read your contract for the words 'Consumer Financing Agreement' or 'equipment financing' — that is the loan.

What happens to leased equipment if the company goes out of business?

The equipment usually becomes useless. Leased security equipment is locked to the provider's monitoring service; it does not work standalone. Owned equipment from a brand like Ring, SimpliSafe, or Eufy continues to function locally and can be moved to any compatible monitoring service or self-monitored.

Buy or Lease Your Security Equipment? The Real 10-Year Math

TL;DR

Over a 10-year horizon, buying outright wins by $1,500–$2,500 in most realistic scenarios. The lease feels cheaper for the first 36 months, then bleeds $15-$25/month forever after. The exception is a true short-stay home (1-2 years) where you do not want any upfront capital. Everything else points to buying — which also gives you ownership, portability, and the option to self-monitor or switch providers without losing your equipment.

Run your specific 5- and 10-year numbers on the cost calculator →

The core math

A typical pro-install lease bundle looks like $40/month all-in for monitoring + leased equipment. A typical buy-outright setup is $1,000 upfront for equipment + $25/month for monitoring only.

| Year | Lease total | Buy total | Difference | | --- | --- | --- | --- | | 1 | $480 | $1,300 | +$820 (lease wins) | | 3 | $1,440 | $1,900 | +$460 (lease wins) | | 5 | $2,400 | $2,500 | +$100 (lease still wins, barely) | | 7 | $3,360 | $3,100 | -$260 (buy wins) | | 10 | $4,800 | $4,000 | -$800 (buy wins by $800) |

By year 5-6 the buy line crosses below the lease line. From year 6 onward, every month the gap widens by $15. At year 10, you have saved roughly $800 — and you own $1,000+ of equipment outright.

What the brochure does not say

Lease equipment is locked. It is firmware-locked to the provider's monitoring service. Cancel and the equipment goes back (or you pay buyout). It will not integrate with HomeKit, Alexa, Google Home, or any third-party platform without paying the provider's premium tier.

Lease equipment depreciates. A 5-year-old leased camera is the same generation of camera as the 5-year-old you started with. Owned equipment can be replaced piecemeal as new models arrive.

Owned equipment is portable. Move homes? Take it with you. Switch monitoring providers? Most owned equipment is supported by Noonlight, Cove, or self-monitoring apps. Leased equipment is gone the moment you cancel.

Owned equipment is self-monitorable. SimpliSafe, Ring, Eufy, and Abode all support no-monthly-fee self-monitoring. That is a real $300+/year savings ceiling that lease deals cannot offer.

When lease genuinely makes sense

Short stay. Renting and moving in 1-2 years? The upfront equipment cost rarely pays back in time.
Replacement guarantee value. Some leases (Vivint, ADT Total) include free equipment replacement for the life of the contract. If you live somewhere with high lightning damage, severe weather, or frequent break-ins, the replacement guarantee is real value.
Pro install bundled. A pro-install on a 4,000+ sqft home with hardwired sensors can run $1,500-$2,500 standalone. A lease that includes that install can be a cleaner total cost.

The "free equipment" trap

If a sales rep says "free equipment, just $X/month all-in" — that is almost always financing in disguise. Read the contract for:

"Consumer Financing Agreement"
"Equipment financing"
"Citizens Pay" or "Fortiva" (third-party lenders)

Those words mean it is a loan. Loans survive cancellation of the monitoring service. So if you cancel monitoring at month 12 of a 60-month equipment loan, you still owe the lender for 48 more months.

That is the Vivint financing trap pattern, and it appears under different brand wrappers across the industry.

Decision matrix

| Your situation | Recommendation | | --- | --- | | Renting / moving < 2 years | Lease, or skip pro install entirely (use SimpliSafe DIY) | | Owner-occupied, 5+ year horizon | Buy outright. No exceptions. | | 4,000+ sqft, complex install needed | Compare carefully — bundled lease may be cheaper than $2,500 standalone install | | Want self-monitoring option | Buy. Lease forecloses it. | | Smart-home-integrated household | Buy an open platform (Ring, Abode). Lease equipment will not integrate. | | Want zero upfront capital | Lease — but understand the 5-year+ cost premium |

What to do today

Run your 10-year numbers on the cost calculator. Plug in the actual lease price you have been quoted vs a typical $1,000 buy-outright setup.
Read the equipment ownership clause in any quote. Look for "leased," "rented," "subject to return," or "Consumer Financing Agreement."
If you already signed a lease, scan it through the Contract Analyzer to surface the exact buyout cost and any auto-renewal that would extend the lease.