Site Container Rental vs Purchase TCO Calculator

Compare rental and purchase for South Korean site-office, storage, or temporary-facility containers using deposits, transport, crane lifts, installation, recurring costs, relocations, restoration, and residual value.

Illustrative quick scenarios

These are not market benchmarks. Replace every value with like-for-like quotes and contract terms.

Shared use assumptions

Match the use, size, quantity, time horizon, and relocation count across both alternatives.

Rental quote

Confirm which deposit, rent, transport, lifts, setup, moves, return, and restoration items the contract includes.

Purchase quote

Enter actual purchase, installation, maintenance, insurance, moving, disposal, and resale evidence.

Present-value cost breakdown

Present-value cost breakdown
Cost categoryRental PVPurchase PV
Equipment or deposit2,000,000 KRW15,000,000 KRW
Setup, foundation, electrical, and insulation4,400,000 KRW4,600,000 KRW
Monthly rental fees31,577,951 KRW0 KRW
Maintenance, insurance, and exclusions877,165 KRW2,339,107 KRW
Transport3,086,057 KRW3,086,057 KRW
Crane and lifting2,320,001 KRW2,320,001 KRW
Restoration and selling costs366,057 KRW640,599 KRW
Residual and deposit credits-1,830,283 KRW-7,321,133 KRW

Discounted cash flow by year

Discounted cash flow by year
PeriodPeriod rental PVPeriod purchase PVCumulative rental PVCumulative purchase PV
Year 1 (months 1-12)10,924,086 KRW787,324 KRW18,924,088 KRW21,987,322 KRW
Year 2 (months 13-24)13,159,860 KRW3,121,509 KRW32,083,948 KRW25,108,831 KRW
Year 3 (months 25-36)10,712,998 KRW-4,444,199 KRW42,796,947 KRW20,664,631 KRW

Purchase residual-value sensitivity

Purchase residual-value sensitivity
Residual scenarioResidual value per unitPurchase PVLower cost
70%2,800,000 KRW22,860,971 KRWPurchase
100%4,000,000 KRW20,664,631 KRWPurchase
130%5,200,000 KRW18,468,291 KRWPurchase

Korea site checkpoint as of August 3, 2026

This result is not a permit, filing, or safety determination. Before installation in Korea, review Building Act Article 20, Enforcement Decree Article 15, local ordinances, and whether Occupational Safety and Health Standards Rules Articles 38 through 40 apply to the heavy-load and lifting work.

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Why monthly rent and purchase price are not enough

A site office or temporary storage container starts consuming cash before it is usable.
Delivery access, truck distance, crane reach, lifting, ground preparation, supports, electrical work, insulation, fit-out, stairs, and canopies can all change the installed cost.
A move between sites repeats transport and usually creates both a loading lift and an unloading lift.
At the end, rental may require return transport and restoration before a deposit is refunded, while ownership may require removal, sale preparation, and a buyer before residual value becomes cash.

This calculator places those cash flows on a monthly timeline of up to 240 months.
It reports nominal total cost of ownership, present-value TCO, equivalent monthly cost, monthly cost per container, an operating crossover month, a break-even monthly rental fee, and residual-value sensitivity.
It is a quote-normalization and planning tool for land-based site facilities, not a shipping-container freight or marine leasing calculator.

Make the alternatives equivalent first

  • Match purpose, size, quantity, insulation, interior finish, utilities, and site conditions.
  • Use the same VAT basis and the same planned use period for every quotation.
  • Set a separate cost to zero when the rental fee or purchase proposal already includes that exact item.
  • Replace every fictional default with a supplier contract, transport quote, crane quote, works quote, and evidence for terminal recovery.

Turning proposals into comparable inputs

Common scope

Purpose and size are scope labels; they do not apply hidden price multipliers.
Select site office, storage, temporary lodging, or another use, then confirm that rental and purchase meet the same functional requirement.
Quantity and months determine scale and timing, while the relocation count places moves evenly between initial delivery and final removal.

Discount and escalation rates

The annual discount rate converts future cash flow to the value-date equivalent.
General escalation applies to recurring maintenance, insurance, and relocation costs, while rental escalation applies only to monthly rent.
Use zero rental escalation for a contractually fixed fee and keep all rates on a consistent nominal basis.

Rental proposal

Separate monthly rent and refundable deposit from delivery, return, crane lifts, installation, foundation, electrical work, insulation, annual exclusions, relocation, and restoration.
The model counts one initial crane lift, two lifts for each relocation, and one final return lift per unit.
Enter the refund rate after realistic damage, cleaning, unpaid-charge, and contract deductions, not an assumed perfect refund.

Purchase proposal

Separate the body price from delivery, lifting, installation, foundation, electrical work, insulation, maintenance, insurance, relocation, terminal transport, restoration, and selling preparation.
Residual value is the amount expected to be recoverable in the final analysis month, supported by a current resale indication or an internal reuse decision.
If a buyer pays for loading and transport, set the corresponding owner-paid terminal inputs to zero.

Do not hide common works

Foundation, electrical, and insulation costs may be identical in both alternatives and therefore may not change the difference.
They still belong in the model when the objective includes total project funding and initial cash.
When a rental supplier includes supports or fit-out but a seller does not, the two alternatives should intentionally have different inputs.

How the lifecycle calculation works

Monthly present value

For month m, the discount factor is one plus the annual discount rate raised to m divided by 12.
The model divides that month's net cost by the factor and adds time-zero cash to obtain present-value TCO.
When the discount rate is zero, nominal and present-value TCO are equal.

PV TCO = initial cash + sum(monthly net cash flow / (1 + annual rate)^(month / 12))

Equivalent monthly cost

The model converts PV TCO into a level monthly payment with the same economic value.
This makes alternatives with very different initial cash easier to compare against a monthly budget.

Operating crossover

This is the first month when cumulative purchase PV is no higher than cumulative rental PV using initial, recurring, and completed relocation costs.
Terminal credits are excluded, so use the full PV comparison for the final decision.

Break-even rental fee

The calculator solves for the monthly rent per unit that makes rental PV equal purchase PV while every other rental input stays fixed.
It is a negotiation reference for one defined scope, not a universal market price.

Cash-flow stages included in rental and purchase TCO
StageRentalPurchaseEvidence to check
StartDeposit, delivery, lifting, and installationBody, delivery, lifting, and installationFoundation, power, and fit-out inclusions
UseMonthly rent and excluded recurring costsMaintenance, repair, and insuranceEscalation and responsibility boundaries
RelocationOne transport and two lifts per moveOne transport and two lifts per moveNew access, ground, and exclusion zones
EndReturn, lift, restoration, less deposit refundRemoval, lift, restoration, selling cost, less residual valueDeductions and responsibility for transport

Step-by-step workflow

  1. Freeze the comparison scope. Set one purpose, specification, quantity, finish level, location, and realistic use period.
  2. Collect complete evidence. Obtain rental and purchase proposals plus transport, crane, foundation, electrical, and fit-out quotations.
  3. Disassemble included items. Confirm which installation, repair, return, and site-work lines are already inside each price.
  4. Add relocation and exit. Enter moves, return or removal, restoration, deposit refund, sale expense, and supportable residual value.
  5. Read multiple outputs together. Compare initial cash, nominal TCO, PV TCO, monthly equivalence, crossover, and sensitivity.
  6. Verify approval and safety separately. A lower TCO does not establish lawful placement or safe lifting work.

Worked example from the editable default

The fictional default uses two 20-foot site-office containers for 36 months with one relocation in month 18.
It enters KRW 450,000 rent per unit per month, KRW 1,000,000 deposit per unit, KRW 7,500,000 purchase price per unit, KRW 4,000,000 residual value per unit, a 3% annual discount rate, and 2% general and rental escalation.
These values reproduce the calculation and explain the interface; they are not a 2026 national average, recommendation, or supplier quote.

Rental and purchase results for the fictional default container scenario
MetricRentalPurchase
Initial cashKRW 8,000,000KRW 21,200,000
Nominal TCOKRW 44,418,440KRW 20,396,320
Present-value TCOKRW 42,796,947KRW 20,664,631
Equivalent monthly costKRW 1,243,824KRW 600,584
Monthly cost per unitKRW 621,912KRW 300,292
Transport and crane costKRW 5,648,000KRW 5,648,000

Reading the result

Purchase PV is KRW 22,132,316 below rental PV in this scenario.
Purchase becomes no higher on operating cumulative PV in month 16, before terminal credits, and the full-PV break-even rent is KRW 134,605 per unit per month.
That economic advantage does not remove the need to fund the larger initial cash amount or manage resale risk.

Residual-value sensitivity

At 70% of the entered residual value, purchase PV is KRW 22,860,971.
At 100% it is KRW 20,664,631, and at 130% it is KRW 18,468,291, while rental PV stays KRW 42,796,947.
A close real quotation can change winner when residual evidence weakens, so the sensitivity table matters more than one optimistic resale estimate.

How to interpret timing and sensitivity

Present-value cash flow by year for the fictional default container scenario
PeriodRental period PVRental cumulative PVPurchase period PVPurchase cumulative PV
Year 1KRW 10,924,086KRW 18,924,088KRW 787,324KRW 21,987,322
Year 2, including month 18 moveKRW 13,159,860KRW 32,083,948KRW 3,121,509KRW 25,108,831
Year 3, including exit creditsKRW 10,712,998KRW 42,796,947KRW -4,444,199KRW 20,664,631

The negative purchase period in year 3 is not free operation; it is the net effect of terminal residual recovery after final costs.
Rental deposit refund is also a terminal credit, but the deposit still creates a financing cost when paid at time zero and returned later.
Compare gross outflow, terminal credits, and PV together so a large refund or resale figure does not conceal the cash needed before recovery.

Practical decision scenarios

Short construction project

Rental often preserves cash and avoids sale administration when the project is only several months.
Return transport, minimum term, early termination, and damage deductions can still make headline rent misleading.

Long-term storage

Repeated rent can make ownership economical over a long stable period.
Test corrosion, roof sealing, doors, repainting, insurance, removal, and conservative resale instead of treating ownership as maintenance-free.

Multiple site moves

Transport and crane work may dominate when containers move repeatedly.
Recheck access width, overhead obstacles, lifting radius, ground bearing, traffic control, and fresh utility works at every location.

Internal reuse is not the same as resale

A purchased container moved into another confirmed project can create internal reuse value instead of sale proceeds.
Use the residual input only for the value the organization can support at the horizon date, and include the transport, refurbishment, storage, and approval work needed to realize it.
Run a low case that assumes delayed reuse or a weaker buyer to expose decision dependence on one terminal assumption.

South Korean placement and lifting checks

A cost result does not decide whether a container is a building, temporary building, reportable structure, or permitted use at a particular site.
Classification can depend on location, land rights, fixing method, purpose, dimensions, duration, rooftop placement, local ordinance, and other statutes.
Confirm the actual plan with the competent city, county, or district office and appropriate building, structural, electrical, fire, sanitation, and safety professionals before contracting or work.

Official South Korean legal references checked for container placement and lifting boundaries
Current source checkedRelevant boundaryWhat the calculator does not decide
Building Act, MST 273437, Article 20, effective February 27, 2026Provides the permission and reporting framework for temporary buildings, including reporting before work for decree-defined cases.Whether this site and structure require permission or reporting.
Enforcement Decree of the Building Act, MST 288339, Article 15, effective July 28, 2026Paragraph 5 item 8 names container-like temporary offices, warehouses, and lodging, excluding rooftop construction in the current text; paragraph 7 addresses duration and local-ordinance extensions.Eligibility, rooftop treatment, duration approval, extension, or compliance with local rules.
Occupational Safety and Health Standards Rules, MST 273603, Articles 38 to 40 and Annex 4 key 000400EAddresses advance survey and work plans for heavy-load handling, work direction, signals, and measures against falls, drops, overturning, crushing, and collapse.Whether a plan is sufficient, who is qualified, or whether a lift is safe.

Cost inclusion is not safety compliance

A crane price entered in the model does not prove that advance surveys, lift planning, competent direction, signals, exclusion zones, rigging, or ground controls are included.
Ask the contractor to define equipment capacity, lift radius, support conditions, traffic control, roles, and the work-plan boundary in writing.
Pause work when actual site conditions differ from the agreed plan.

Frequently asked questions

Does the cheaper PV option always have lower funding risk?

No.
Purchase can have lower PV but require much more time-zero cash, while rental can preserve liquidity but accumulate a higher economic cost.
Review initial cash, payment timing, credit limits, and downside scenarios alongside PV.

Why is a fully refundable deposit not cost-free?

The deposit is cash paid now and recovered later.
With a positive discount rate, the future refund has a lower present value, representing the opportunity cost of tied-up funds.
A refund rate below 100% adds a direct loss as well.

Why does one relocation create two crane lifts?

The model treats an intermediate move as loading at the departing site and unloading or placement at the receiving site.
Initial placement and final removal each add one lift.
Adjust the per-lift amount or included items when a real contractor prices the operation differently.

Can the calculator confirm a temporary-building report?

No.
The legal references are verification prompts, not an automated classification.
Obtain location-specific confirmation from the competent authority before installation, especially for rooftop placement, lodging, long duration, or restricted land.

How should VAT be handled?

Use one consistent basis across all alternatives.
A business that can recover input VAT may compare consistently exclusive amounts, while a final cash budget may need inclusive amounts and timing.
Do not mix VAT-inclusive rent with VAT-exclusive purchase and works quotations.

What if the actual move months are uneven?

The relocation count is placed evenly for a compact planning model.
When known dates differ materially, run separate staged scenarios or use the annual cash-flow output as a reconciliation starting point.
Preserve the same total scope when comparing the alternatives.

Evidence checklist and verified sources

Before comparing

  • Equivalent specification and VAT basis
  • Supplier inclusion and exclusion schedule
  • Transport distance, access, and waiting charges
  • Crane capacity, radius, lifts, and safety scope
  • Foundation, power, fire, sanitation, and fit-out work
  • Deposit deductions, termination, restoration, and residual evidence

Before approval

  • Competent-authority and land-use confirmation
  • Duration and extension procedure
  • Structural, electrical, fire, and sanitation review
  • Advance survey, lift plan, direction, and signal method
  • Low, base, and high residual or deposit cases
  • Named owner for contract exit and evidence retention

Source status was checked on August 3, 2026.
NIST Handbook 135e2022 supports the lifecycle present-value method; it does not supply Korean container prices, service lives, discount rates, or residual values.
South Korean statutes are cited to define approval and safety questions only and do not create an automatic legal result inside the cost model.

Build a decision file, not just one result

Enter the real proposals, save the assumptions beside each source document, and compare at least a base case and a conservative terminal-value case.
Then record who confirmed placement, utilities, fire and sanitation requirements, lifting controls, contract exit, deposit deductions, and resale or reuse evidence.
The stronger decision is the one that remains affordable and executable when those assumptions are challenged.