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Comparison Summary
Total Lease Cost: -
Total Buy Cost: -
Difference (Savings): -
Cost Comparison Chart
Overview & Methodology
This tool compares the financial implications of leasing versus buying an asset.
Lease Option:
Total Lease Cost = (Monthly Lease Payment × Lease Duration) + Residual Value
Buy Option:
Down Payment = max(Asset Price − Loan Amount, 0)
Monthly Loan Payment is calculated using:
$$ M = L \cdot \frac{r(1+r)^n}{(1+r)^n - 1} $$
where L is the loan amount, r is the monthly interest rate (annual interest ÷ 12 ÷ 100), and n is the loan term in months.
Total Buy Cost = Down Payment + (Monthly Loan Payment × Loan Term) + (Additional Monthly Costs × Loan Term)
Example
For a car priced at €30,000:
• Lease Option: €350/month for 36 months (residual value assumed 0) → Total Lease Cost = €12,600
• Buy Option: Loan Amount = €25,000 at 5% annual interest over 60 months, additional costs = €100/month, and a down payment of €5,000
The calculator computes the total buy cost and displays the difference.
Frequently Asked Questions
What if the residual value is not provided?
If no residual value is entered, it is assumed to be 0.
How is the monthly loan payment calculated?
It is computed using the formula: $$ M = L \cdot \frac{r(1+r)^n}{(1+r)^n - 1} $$
What does the cost difference indicate?
A positive difference indicates that one option is more expensive than the other, helping you decide which is more cost-effective.