Lease vs Buy Calculator
Compare lease spending against purchase cash flows and resale value over the same period.
Loading calculator…
Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Compare lease spending against purchase cash flows and resale value over the same period. Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
How to use the Lease vs Buy Calculator
- Enter or select comparison period (months).
- Enter or select lease monthly payment.
- Enter or select lease upfront fees.
- Enter or select purchase price.
- Enter or select purchase down payment.
- Enter or select loan apr (%).
- Enter or select loan term (months).
- Enter or select expected resale value at comparison end.
- Read the calculated result; change any measurement to compare alternatives.
Formula
payment=P×r/(1−(1+r)^−term); outstanding balance after m=P×(1+r)^m−payment×((1+r)^m−1)/r; net buy cost=down+paid installments+balance−resale
- months
- Comparison period (months)
- lease
- Lease monthly payment
- leaseUp
- Lease upfront fees
- price
- Purchase price
- down
- Purchase down payment
- apr
- Loan APR (%)
- term
- Loan term (months)
- resale
- Expected resale value at comparison end
Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
Worked example
For lease vs buy calculator, the following measurements illustrate the exact method: Comparison period (months): 36; Lease monthly payment: 400; Lease upfront fees: 3000; Purchase price: 30000; Purchase down payment: 5000; Loan APR (%): 6; Loan term (months): 60; Expected resale value at comparison end: 22000.
Inputs
- Comparison period (months)36
- Lease monthly payment400
- Lease upfront fees3000
- Purchase price30000
- Purchase down payment5000
- Loan APR (%)6
- Loan term (months)60
- Expected resale value at comparison end22000
Result
- Net purchase cost$11,304.61
- Lease cost$17,400.00
- Buy minus lease-$6,095.39
- Loan monthly payment$483.32
Results explained
- Net purchase cost
- Net purchase cost from the formula above. Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
- Lease cost
- Lease cost from the formula above. Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
- Buy minus lease
- Buy minus lease from the formula above. Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
- Loan monthly payment
- Loan monthly payment from the formula above. Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
Frequently asked questions
payment=P×r/(1−(1+r)^−term); outstanding balance after m=P×(1+r)^m−payment×((1+r)^m−1)/r; net buy cost=down+paid installments+balance−resale
Use the tire sidewall markings, actual vehicle specifications or recorded fuel/price values required by the inputs. Do not mix US gallons and imperial gallons.
Lease residual ownership is zero. Buy cost accounts for remaining debt; excludes taxes, maintenance and mileage penalties.
Yes. Change the relevant size, price or efficiency while keeping the other inputs constant. Results update immediately.
No. Check manufacturer fitment, load and speed ratings, clearance and local requirements with a qualified technician.