Lease vs Buy Calculator
Compare total cost of leasing vs buying a car or equipment over time — includes interest, depreciation, and residual value.
About the Lease vs Buy Calculator
Compare total cost of leasing vs buying a car or equipment over time — includes interest, depreciation, and residual value.
Lease vs Buy Calculator compares the true total cost of leasing versus purchasing a car or equipment over the full ownership period. It factors in down payment, loan interest, monthly payments, and the critical number most comparisons ignore: the residual value you keep when buying vs the nothing you keep when leasing.
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Lease vs Buy Calculator
Frequently asked questions
Not always. Leasing wins when: the asset depreciates fast (technology), you want to upgrade frequently (3-year car cycles), or you need to conserve capital (business equipment). Buying wins for long-term ownership, low-depreciation assets, and when you can make a large down payment.
The estimated value of the asset at the end of the ownership/lease period. A $35,000 car might be worth $20,000 after 3 years (57% residual). When buying, you keep this value. When leasing, the leasing company keeps it. This is the biggest factor in the lease vs buy decision.
You are only paying for the depreciation during the lease term, not the full purchase price. But you own nothing at the end. Lower monthly payment ≠ lower total cost. Always compare total cost over the same period, including what you own at the end.
For business use: lease payments are fully deductible as operating expenses. Purchase allows depreciation deductions (Section 179 or MACRS). For personal use: typically no tax advantage either way. Consult a tax professional for your specific situation.
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