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Lease vs Buy Calculator

Compare the total cost of leasing versus buying a car or asset. Enter lease terms, purchase price and finance rate to find the most cost-effective option.

Last reviewed 15 August 2026

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When to use this calculator

  • Before buying, renting, refinancing or reviewing a property investment.
  • When you want to compare cash flow, tax, yield or ownership costs.
  • When you need a fast estimate before speaking to an agent, lender or adviser.
  • When you want to see how a rate or price change moves the result.

A realistic US planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic US planning example
InputValue
Vehicle Price ($)$0.30
Monthly Lease Payment ($)6
Lease Term (Years)25 years
Loan Interest Rate (%)$280,000

After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.

How to read your results

Result

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Method & assumptionsAuthoritative sources

This calculator compares the total financial cost of leasing (renting) a property against purchasing it on a leasehold or freehold basis over a chosen time horizon. For leasehold purchases, the model includes estimated service charges and ground rent alongside mortgage costs. For freehold, it includes maintenance reserves. The leasing scenario assumes rent increasing annually at your specified rate. The calculator does not predict property value changes or lease extension costs, both of which are highly property-specific. It is intended to provide a structured framework for comparing the two routes rather than a precise financial forecast. Before purchasing any leasehold property, obtain a full set of service charge accounts and take independent legal advice on the lease terms.

Common mistakes

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.

Frequently asked

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.

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