Calculator Inputs
Example Data Table
| Input | Example value | Why it matters |
|---|---|---|
| Vehicle price | $40,000 | Sets both lease and finance cost foundations. |
| Lease residual | 58% | Higher residual usually lowers lease depreciation cost. |
| Finance APR | 6.50% | Higher APR increases total interest paid. |
| Expected annual miles | 14,000 | Can trigger lease overage fees. |
| Resale value after 36 months | $26,000 | Strong resale value improves finance economics. |
Formula Used
- Lease residual value = Vehicle price × Residual percentage.
- Lease depreciation fee = (Net cap cost − Residual value) ÷ Lease months.
- Lease finance fee = (Net cap cost + Residual value) × Money factor.
- Lease payment with tax = Base lease payment + Monthly sales tax.
- Lease total cost = Upfront + Contract payments + Mileage fees + End fees + Operating costs.
- Finance loan amount = Vehicle price with tax − Down payment.
- Finance monthly payment uses the standard amortized loan payment formula.
- Remaining loan balance uses amortization after the chosen comparison months.
- Finance equity = Estimated resale value − Remaining loan balance.
- Finance total cost = Down payment + Loan payments + Operating costs − Equity credit.
How to Use This Calculator
- Enter the vehicle price, tax rate, and down payment.
- Fill lease terms, residual percentage, fees, and mileage limits.
- Fill finance term, APR, and expected resale value.
- Add monthly maintenance, insurance, and yearly registration costs.
- Choose a comparison horizon in months.
- Press Calculate Costs to view the winner.
- Use Download CSV for spreadsheet analysis.
- Use Download PDF after results appear.
FAQs
1. Is leasing always cheaper than financing?
No. Leasing often lowers monthly payments, but repeated upfront fees, mileage penalties, and no ownership equity can make financing cheaper over longer horizons.
2. Why does resale value matter so much?
Resale value creates equity for financed vehicles. Strong resale value offsets ownership cost because you recover value when selling or trading the car.
3. What does the money factor mean?
The money factor is the lease financing charge. A larger money factor increases the rent charge portion of the lease payment.
4. Why does the lease model use full cycles?
Leases are signed for fixed terms. This calculator uses whole lease cycles to cover your chosen comparison horizon, which makes the estimate more conservative.
5. How are mileage fees estimated?
The calculator compares expected yearly miles against the yearly lease allowance. Any extra miles are multiplied by the contract length and per-mile fee.
6. Should maintenance and insurance be different?
They can be. Some leased vehicles stay under warranty longer, while financed vehicles may keep higher maintenance costs as they age.
7. Does a larger down payment always help?
It reduces financed principal and may lower lease cap cost, but it also ties up cash. Compare total cost, not payment size alone.
8. Can this calculator replace dealer quotes?
No. It is a planning tool. Dealer taxes, incentives, dealer-installed fees, and local rules can change the final numbers.