The ROI of IPv4 Investment: Buy, Lease, or Rent — Which Makes Financial Sense?
Buying, leasing, or renting—each has different cost and commitment. This post compares the ROI of the three options so you can choose what makes financial sense for your timeline and budget.
Buy: When Ownership Pays
Buying means you acquire the block and complete an RIR transfer. You own the asset; you pay upfront (or in agreed installments). Buying fits long-term need and when you want an asset that can hold or increase in value.
Example: Buying a /24 Block
| Cost Component | Amount |
|---|---|
| Purchase price (256 IPs × $30/IP) | $7,680 |
| RIR transfer fee | ~$500 |
| Total upfront cost | ~$8,180 |
Cloud fees avoided via BYOIP. If you’d otherwise pay cloud provider rates ($0.005/hour per IP):
- Monthly cloud cost for 256 IPs: ~$921
- Annual cloud cost: ~$11,052
- Breakeven: ~9 months
After breakeven, you save ~$11,000/year. Over 5 years, ownership saves roughly $47,000 compared to paying cloud IPv4 fees—plus you retain an asset that can be sold or leased out.
Our how to buy IPv4 guide walks through the process. Buying is the path when long-term control and asset ownership make financial sense.
Lease: When Medium-Term Fits
Leasing gives you use rights for 1–3 years typically. You pay periodically (monthly or annually). Leasing fits when you need medium-term capacity without a large upfront commitment.
Example: Leasing a /24 Block
| Lease Term | Monthly Cost | Total Cost | vs Cloud Fees |
|---|---|---|---|
| 12 months | ~$110/month | ~$1,320 | Saves ~$9,732 |
| 24 months | ~$100/month | ~$2,400 | Saves ~$19,704 |
| 36 months | ~$90/month | ~$3,240 | Saves ~$29,916 |
Current market lease rates range from $0.40–$0.60 per IP per month for /24 blocks, with discounts for longer terms.
Lease vs Buy comparison (3-year horizon):
- Lease cost: ~$3,240
- Buy cost: ~$8,180 upfront (but you keep the asset)
- If you plan to use for 5+ years, buying wins. For 1–3 years, leasing preserves capital.
So leasing makes financial sense when your horizon is 1–3 years and you prefer spreading cost over time.
Rent: When Short-Term or Flexible
Renting gives you short-term or flexible use. You pay typically on a monthly basis with no long-term commitment. Renting fits projects, testing, burst, or when you don’t want a contract.
Example: Renting a /24 Block
| Duration | Monthly Rent | Total Cost | Notes |
|---|---|---|---|
| 1 month | ~$130 | $130 | No contract, highest rate |
| 3 months | ~$120 | $360 | Short-term project |
| 6 months | ~$110 | $660 | Approaching lease territory |
Rental rates are typically 10–30% higher than lease rates due to flexibility and no commitment.
When rent wins:
- Projects under 6 months
- Testing and proof-of-concept
- Seasonal or burst capacity
For anything over 6 months, compare rental quotes to lease terms—leasing usually costs less for sustained use.
So renting makes financial sense when your need is short or variable and you evaluate cost over that period.
What to Do Next
To choose buy, lease, or rent:
- Define your timeline. How long do you need IPv4? That drives which option fits.
- Model total cost. Price for buy (upfront), lease (periodic), rent (monthly). Include cloud fees avoided with BYOIP.
- If buy fits: Our buy guide walks through the process.
Buying fits long-term control; leasing fits medium-term; renting fits short-term. Your timeline and pricing determine which makes financial sense.