The Big Question: Lease or Buy?
When you need IPv4 addresses, the lease-vs-buy decision can save or cost you thousands of dollars. The right choice depends on your timeline, budget, and use case. This guide provides a data-driven analysis to help you decide.
Cost Comparison: Real Numbers
Let us compare the total cost of ownership for a /24 block (256 IPs) over different time periods:
| Period | Purchase (One-Time) | Monthly Lease | Annual Lease |
|---|---|---|---|
| 1 Year | $8,000 | $1,200 - $1,800 | $960 - $1,500 |
| 2 Years | $8,000 | $2,400 - $3,600 | $1,920 - $3,000 |
| 3 Years | $8,000 | $3,600 - $5,400 | $2,880 - $4,500 |
| 5 Years | $8,000 | $6,000 - $9,000 | $4,800 - $7,500 |
Note: Purchase price assumes current market rate of ~$30/IP. Lease prices based on current market rates. Purchase price may appreciate over time, adding investment value.
Break-Even Point
For a typical /24, the break-even point between buying and leasing is approximately 4-6 years. If you plan to use the addresses for longer than this, buying is more cost-effective. For shorter periods, leasing saves money.
When to Buy
- Long-term need (5+ years): Total cost of ownership favors purchasing
- Asset appreciation: IPv4 addresses have appreciated 8-15% annually in recent years
- Full control: No dependency on a lessor for ROA/LOA management
- Resale potential: You can sell the addresses later if needs change
- No recurring costs: One-time payment vs. ongoing monthly/annual fees
When to Lease
- Short-term projects: Campaigns, testing, or temporary infrastructure
- Capital preservation: Keep cash available for core business needs
- Scalability: Easily add or release subnets as demand changes
- IPv6 transition planning: Bridge the gap while migrating to IPv6
- Immediate availability: Leased IPs can often be ready within 24-48 hours
What Is Included in a Lease?
A standard IPv4 lease typically includes:
- LOA (Letter of Authorization): Authorizes you to announce the addresses from your network
- ROA (Route Origin Authorization): RPKI setup for routing security
- Clean IP guarantee: Addresses verified against blacklists
- Technical support: Assistance with BGP announcement setup
Hybrid Approach
Many organizations use a hybrid strategy:
- Purchase a core block for permanent infrastructure needs
- Lease additional capacity for variable or seasonal demand
- This balances cost efficiency with operational flexibility
Explore both options: Buy IPv4 or Lease IPv4 on our platform. Browse current availability on our marketplace.