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Lease vs Buy Calculator | UK
Lease vs Buy Calculator is designed to help you compare ownership costs, rental performance, and buy-versus-rent decisions. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for United Kingdom users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before buying, renting, refinancing, or reviewing a property investment.
- When you want to compare cash flow, yield, growth, and ownership costs side by side.
- When you need a fast estimate before speaking to an agent, lender, or adviser.
Result
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic UK planning example
A realistic example to help you understand how the numbers fit together.
Vehicle Price (£)
£0.30
Monthly Lease Payment (£)
350
Lease Term (Years)
25 years
Loan Interest Rate (%)
£200,000
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
Is it better to lease or buy a car in the UK?
Leasing suits those who want a new car every few years with lower monthly payments and no depreciation risk. Buying is better if you plan to keep the vehicle long-term, as you build equity and eventually own it outright.
What is PCP car finance?
Personal Contract Purchase (PCP) is the most popular UK car finance option. You pay lower monthly instalments with a large optional final payment (balloon) to own the car, or you can return it and start a new deal.
What are the tax implications of leasing vs buying for a business?
UK businesses can claim lease payments as a deductible expense, while purchased vehicles are claimed through capital allowances. The best option depends on the vehicle's CO2 emissions and your business structure.
What happens at the end of a car lease?
At the end of a UK car lease (PCH), you return the vehicle. You may face excess mileage charges or damage fees if the car is not in fair condition. There is no option to purchase the car.
How much deposit do I need for a car lease?
UK car lease deposits are typically 3, 6, or 9 months' worth of payments upfront. A larger initial payment reduces your monthly cost but increases the amount at risk if the car is written off.
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