Lease vs Buy Calculator
Leasing costs the upfront amount plus the monthly figure times the months — all of it gone. Buying pays the full price but hands some back at resale, so the real outlay is price minus resale. 3,000,000 upfront plus 450,000 a month for 36 months is 19,200,000; buying at 30,000,000 and selling at 18,000,000 is 12,000,000 — 7,200,000 less. Per month that is 533,333 leasing against 333,333 buying.
Your numbers
Difference
7,200,000
Total cost to lease
19,200,000
Total cost to buy
12,000,000
Buying, per month
333,333
Formula
Total cost to lease = Lease upfront + Lease a month × Months, Total cost to buy = Purchase price − Salvage value
It is a plain total that ignores when the money leaves. Buying pays 30,000,000 today while the lease spreads over 36 months, so the same total is not the same burden. Finance the purchase and the interest belongs on the buying side. The resale figure is an assumption, and that one field swings the conclusion — at 10,800,000 the two sides meet. Maintenance and insurance bundled into a lease, mileage overage charges and end-of-term repair bills are all outside this arithmetic.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Lease a monthThe monthly lease payment; check whether maintenance and insurance are in it. | 450,000 | 0 and up |
| Months (mo)The period counted in months; a yearly rate gets divided by twelve. | 36 | 1 ~ 120 |
| Lease upfrontPaid once at signing — deposits and acquisition fees live here. | 3,000,000 | 0 and up |
| Purchase priceWhat you actually paid, fees included, or the profit maths breaks. | 30,000,000 | 0 and up |
| Salvage valueWhat it is assumed to be worth at the end of its life; set zero to spread the whole cost. | 18,000,000 | 0 and up |
Step by step
Quick reference table
Results when only Lease a month changes and everything else stays put.
| Lease a month | Difference | Total cost to lease | Total cost to buy |
|---|---|---|---|
| 225,000 | -900,000 | 11,100,000 | 12,000,000 |
| 337,500 | 3,150,000 | 15,150,000 | 12,000,000 |
| 450,000 | 7,200,000 | 19,200,000 | 12,000,000 |
| 675,000 | 15,300,000 | 27,300,000 | 12,000,000 |
| 900,000 | 23,400,000 | 35,400,000 | 12,000,000 |
What each result means
| Result | At default values |
|---|---|
| DifferenceThe gap between two values — a quantity, not a rate. | 7,200,000 |
| Total cost to leaseEverything a lease costs to the end of the term, with no asset left over. | 19,200,000 |
| Total cost to buyPurchase price less resale — the real outlay; loan interest goes on top. | 12,000,000 |
| Buying, per monthThe buying total spread over the same number of months. | 333,333 |
Common mistakes
It is a plain total that ignores when the money leaves. Buying pays 30,000,000 today while the lease spreads over 36 months, so the same total is not the same burden. Finance the purchase and the interest belongs on the buying side. The resale figure is an assumption, and that one field swings the conclusion — at 10,800,000 the two sides meet. Maintenance and insurance bundled into a lease, mileage overage charges and end-of-term repair bills are all outside this arithmetic.
Glossary
- Lease a month
- The monthly lease payment; check whether maintenance and insurance are in it.
- Months
- The period counted in months; a yearly rate gets divided by twelve.
- Lease upfront
- Paid once at signing — deposits and acquisition fees live here.
- Purchase price
- What you actually paid, fees included, or the profit maths breaks.
- Salvage value
- What it is assumed to be worth at the end of its life; set zero to spread the whole cost.
- Difference
- The gap between two values — a quantity, not a rate.
- Total cost to lease
- Everything a lease costs to the end of the term, with no asset left over.
- Total cost to buy
- Purchase price less resale — the real outlay; loan interest goes on top.
- Buying, per month
- The buying total spread over the same number of months.
Frequently asked questions
Q. How is Lease vs Buy Calculator calculated?
Total cost to lease = Lease upfront + Lease a month × Months, Total cost to buy = Purchase price − Salvage value — Leasing costs the upfront amount plus the monthly figure times the months — all of it gone. Buying pays the full price but hands some back at resale, so the real outlay is price minus resale. 3,000,000 upfront plus 450,000 a month for 36 months is 19,200,000; buying at 30,000,000 and selling at 18,000,000 is 12,000,000 — 7,200,000 less. Per month that is 533,333 leasing against 333,333 buying.
Q. Can you walk through an example?
With Lease a month 450,000, Months 36mo, Lease upfront 3,000,000, Purchase price 30,000,000, Salvage value 18,000,000, the answer is Difference 7,200,000.
Q. What do I need to enter?
Enter Lease a month, Months, Lease upfront, Purchase price, Salvage value. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Lease a month moves the answer to Lease a month 225,000 → Difference -900,000 and Lease a month 900,000 → Difference 23,400,000. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
It is a plain total that ignores when the money leaves. Buying pays 30,000,000 today while the lease spreads over 36 months, so the same total is not the same burden. Finance the purchase and the interest belongs on the buying side. The resale figure is an assumption, and that one field swings the conclusion — at 10,800,000 the two sides meet. Maintenance and insurance bundled into a lease, mileage overage charges and end-of-term repair bills are all outside this arithmetic.
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