Lease vs Buy Calculator
Should you lease an asset or buy it? Compare the total cost of each path — leasing versus buying on a loan or with cash — over the same term, and see which is cheaper and by how much. Then explore asset finance with PakkaLoan across 70+ partnered banks and NBFCs.
Lease vs buy calculator
Compare the total cost of leasing an asset against buying it (with a loan or outright) to see which is cheaper over the same term. Figures are indicative.
Doubles as the loan tenure when buying on finance.
- Lease47%
- Buy53%
Cost difference
₹1,17,868
cheaper to lease
Total lease cost
₹10,20,000
lease payments + residual value
Total buy cost
₹11,37,868
incl. EMI of ₹28,830/mo
A financial-only comparison. Leasing offers flexibility; buying builds equity.
How the lease vs buy comparison works
Both totals are computed over the same term, so you're always comparing like with like.
1. Enter the asset and lease terms
Set the asset's total cost, the monthly lease payment, the lease term in months, and the residual (end-of-lease) value you'd pay to own it.
2. Choose how you'd buy
Pick buying on a loan — with a down payment and annual rate, where the lease term doubles as the loan tenure — or buying outright with cash.
3. Compare the total cost
Total lease cost = lease payments + residual value. Total buy cost = down payment + EMI × term (loan) or the asset cost (cash). The calculator shows which is cheaper and by how much.
Make the lease-or-buy call with confidence
Put both options on the same scale before you sign anything.
See the real cost of each path
Leasing spreads cost and keeps cash free; buying builds equity. The calculator puts both totals side by side so the trade-off is clear.
Test rates, terms and residuals
A lower loan rate, a higher residual or a shorter term can flip the answer. Compare scenarios instantly before you commit.
Decide with numbers, not guesswork
Replace a gut call with a clear cost comparison — then choose the option that best fits your cash flow and balance sheet.
Lease or buy: which is right for you?
Leasing lets you use an asset for fixed monthly payments without owning it outright, often with the option to buy it at the end for its residual value. Buying — whether outright or on a loan — makes the asset yours and builds equity, but ties up more capital up front or adds an EMI to your books.
Cost is only one part of the decision, but it’s the part you can measure precisely. This calculator totals the lease route (lease payments plus residual value) against the buy route (down payment plus EMIs, or the full cash price) over the same term, so you can see which is cheaper before weighing the flexibility of leasing against the ownership of buying. When you’re ready, explore asset and equipment finance with PakkaLoan’s lending partners.
This is a financial-only comparison and is for guidance. Actual lease terms, loan rates and fees are set by the provider or lending partner after assessing your application.
Lease vs Buy Calculator FAQs
Common questions about comparing the cost of leasing versus buying.
It compares the total cost of leasing an asset against buying it over the same term. You enter the asset cost, lease payment, term and residual value, and choose whether you'd buy on a loan or with cash. The tool returns the total lease cost, the total buy cost, and which option is cheaper.
Total lease cost = (monthly lease payment × lease term) + residual value. For buying on a loan, the principal is the asset cost minus the down payment, the EMI is computed with the standard reducing-balance formula over the lease term, and total buy cost = down payment + (EMI × term). For a cash purchase, total buy cost equals the asset cost. The cost difference is total buy cost minus total lease cost.
Yes. The cost difference is total buy cost minus total lease cost, so a positive number means buying costs more and leasing is the cheaper option; a negative number means buying is cheaper. The result card shows the absolute difference and which side it favours.
Yes. The calculator compares cost alone. It does not weigh non-financial factors — leasing offers flexibility and easier upgrades, while buying builds equity and ownership. Use the numbers alongside those considerations when you decide.
No. The calculator runs entirely in your browser and raises no credit enquiry. A formal enquiry is only made when you proceed with a specific lender and they assess a full application.
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