Calculator Inputs
Example Data Table
These sample figures are illustrative only.
| Scenario | Vehicle Price | Lease Term | Lease Monthly | Loan Monthly | Lease Total | Buy Total | Lower Cost |
|---|---|---|---|---|---|---|---|
| Compact SUV | $35,000 | 36 months | $567.48 | $556.14 | $33,781.28 | $28,490.16 | Buy |
| Mid-Size Sedan | $29,500 | 36 months | $472.10 | $461.35 | $29,210.60 | $25,804.90 | Buy |
| Premium Crossover | $46,800 | 39 months | $689.55 | $721.92 | $43,901.45 | $39,874.77 | Buy |
Formula Used
(Net Cap Cost − Residual Value) ÷ Lease Term
(Net Cap Cost + Residual Value) × Money Factor
Lease Depreciation + Lease Finance Charge + Lease Tax
Upfront Lease Cash + Total Lease Payments + Running Costs + End Charges
Vehicle Price − Rebate + Sales Tax − Down Payment − Trade-In
P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Upfront Buy Cash + Loan Payments + Running Costs + Loan Balance − Resale Value
Each future cash flow is discounted using the annual discount rate.
How to Use This Calculator
- Enter the negotiated vehicle price and any rebate.
- Fill in lease assumptions, including money factor and residual percentage.
- Add mileage limits, expected miles, and lease fees.
- Enter buy assumptions, including down payment, APR, and loan term.
- Add monthly insurance, maintenance, and fuel for both paths.
- Set expected resale value and optional discount rate.
- Click Analyze Lease vs Buy to see totals, equity, and recommendation.
- Use the CSV or PDF buttons to save the result summary.
Frequently Asked Questions
1. What does this calculator compare?
It compares total lease cost and total buy cost over the lease term. It also shows present value, loan balance, resale value, and end-of-period equity.
2. Should I use MSRP or negotiated price?
Use the actual negotiated selling price whenever possible. That gives a more realistic lease payment, loan amount, and final comparison.
3. What is the money factor?
The money factor is the lease finance rate. A higher money factor increases the financing portion of the monthly lease payment.
4. Why is resale value included for buying?
Buying leaves you with an asset. The expected resale value reduces your net ownership cost because you may recover part of the vehicle’s value later.
5. How are mileage penalties handled?
The calculator estimates total excess-mile charges by comparing expected annual miles with allowed lease miles, then multiplying the difference by the overage fee.
6. Can lease tax and purchase tax differ?
Yes. Some locations tax lease payments differently from vehicle purchases. Separate fields let you model both situations more accurately.
7. Does a lower monthly payment always mean the cheaper option?
No. Upfront cash, mileage fees, resale value, and outstanding loan balance can change the real total cost significantly.
8. Why does present value matter?
Present value discounts future cash flows. It helps compare options when timing matters, especially with longer terms and larger end-of-period amounts.