Lease or buy?
Compare the total cost of leasing and buying on credit for a vehicle or equipment.
How it works
Buying: loan payments − resale value. Leasing: payments + fees (no resale). Tax treatment can change the answer: ask your accountant.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Purchase price38000
- Loan rate (%)4.5
- Term (years)4
- Resale value at the end16000
- Monthly lease payment640
- Lease fees (first payment, admin…)2500
you get:
- Cheapest optionBuy (loan)
- Difference€7,626.44
- Net cost of buying€25,593.56
- Loan payment€866.53 / month
Frequently asked questions
How does the “Lease or buy?” tool work?
Buying: loan payments − resale value. Leasing: payments + fees (no resale). Tax treatment can change the answer: ask your accountant.
What do I need to enter?
Just fill in: purchase price, loan rate, term, resale value at the end, monthly lease payment, lease fees. The result updates as you type.
Can you give an example?
Purchase price: 38000; Loan rate (%): 4.5; Term (years): 4; Resale value at the end: 16000; Monthly lease payment: 640 → Cheapest option: Buy (loan); Difference: €7,626.44.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.