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Lease vs Buy Calculator — Car, Equipment, or Anything

Compare total cost of leasing vs buying (car, equipment, appliances) over your chosen horizon. Includes financing, resale value, and money-down assumptions.

Runs 100% in your browser — nothing is uploaded.

Buy
Lease
Cheaper over 3 years
Buy
Saves $10,069
Buy scenario
Monthly loan payment$587
Total paid over horizon$26,131
Minus resale value− $18,000
Net cost$8,131
Lease scenario
Monthly lease$450
Money down$2,000
Total paid over horizon$18,200

Ignores mileage overages, wear-and-tear charges, insurance, maintenance, and opportunity cost on the down payment. Real-world lease vs buy also depends on tax treatment (especially for businesses) — this is a simplified break-even.

Frequently asked

Why does the buy scenario need a resale value?

Because you own the asset at the end. If you plan to sell after 3 years, subtract its estimated resale from the total paid — that's your net cost. Use zero if you plan to keep it forever (or drive it into the ground).

What is not included?

Insurance, maintenance, sales tax, mileage-overage fees, disposition fees, and opportunity cost on down payment. Leases in the real world also have very different tax treatment for businesses. Treat this as a starting point, not a full TCO model.

How is the loan payment calculated?

Standard amortization: `PMT = P·r / (1 − (1+r)^-n)` where r is the monthly rate and n is the term in months. Same formula as our Loan and Mortgage calculators.

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