Lease vs. Buy Calculator

Common horizon. The entered lease term is the comparison period. Purchase payments stop at the earlier of that horizon or the loan payoff month. Any unpaid purchase loan balance and the user-estimated asset value are measured at the same date.

Purchase formulas. Amount financed = price + purchase sales tax + purchase fees − down payment − trade-in credit. The monthly payment uses standard fixed-rate amortization. Remaining balance is the present unpaid principal after the number of scheduled payments made. Owner equity = estimated value − remaining balance. Modeled purchase net cost = purchase cash outlay + trade-in credit − owner equity.

Lease formulas. Lease cash outlay = upfront payment + acquisition fee + taxed monthly payments for the lease term + monthly lease costs + disposition fee + estimated excess-mile charge. The displayed residual/buyout amount is informational and is not subtracted because this model assumes the asset is returned, not purchased.

Tax and fee assumptions. Purchase sales tax and purchase fees are assumed financed; lease sales tax is applied to each entered monthly payment. Actual tax treatment varies by jurisdiction and agreement. Enter zero where a charge does not apply. Upfront payment excludes acquisition fees and monthly payments to prevent double counting.

Excluded unless entered. Insurance, fuel or energy, registration, repair risk, excess wear, early termination, security deposits, opportunity cost, investment returns, and taxes not represented by the editable fields are not modeled.

Limit. NumPad compares modeled cash flows and end value from your inputs. It does not recommend leasing or buying, predict market value, quote a lender or lessor, or determine tax treatment.

Official consumer references: CFPB — leasing versus buying; FTC — financing or leasing a car; IRS Publication 463 — business vehicle expenses.

Last verified: August 28, 2026.