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Leasing vs Financing vs Cash Calculator

Compare three ways to get a car with one set of inputs. The calculator shows total cost, monthly equivalent, cost per kilometre and the gap to the second-best option.

Finance

Inputs

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The calculator compares leasing, financing and cash purchase over the same holding period. It shows whether a low monthly payment, resale value or tied-up cash drives the result.

Display currencyChoose the currency symbol for entered amounts and results. No exchange-rate conversion is applied.

Vehicle price ($)

Purchase or list price of the vehicle as the common basis.

Holding period (years)

Period over which leasing, financing and cash purchase are compared.

Kilometres per year

Used to convert total cost into cost per kilometre.

Monthly lease payment ($)

Monthly payment from the lease offer, excluding running vehicle costs such as insurance or maintenance.

Lease upfront payment ($)

One-off payment at the start. It is fully included in lease cost.

Lease return / extra charges ($)

Cautious buffer for return charges, excess mileage, damage or fees.

Financing down payment ($)

Cash down payment for financing. The remainder is modelled as the loan amount.

Financing interest p.a. (%)

Simplified annual interest rate for the car loan.

Loan term (months)

The loan term may differ from the holding period. Any remaining balance is included at sale.

Resale value after holding period ($)

Expected resale proceeds for financing or cash purchase. An overly high value can make buying look too attractive.

Foregone return on cash purchase p.a. (%)

Estimates what the tied-up cash might have earned elsewhere.

FAQ

FAQ about Leasing vs Financing vs Cash Calculator

Is leasing cheaper than financing?

Not automatically. Leasing may have a lower monthly payment, but upfront cost, return rules, mileage and lack of resale value benefit can change the result.

Why include opportunity cost for cash purchase?

Cash purchase ties money up in the vehicle. The optional opportunity cost estimates what this money might have earned elsewhere.

Are running car costs included?

No. Insurance, tax, maintenance, tyres and repairs are excluded because they vary by vehicle, contract and country.