Leasing vs. Buying Calculator
Enter down payment, monthly rate and purchase price – see instantly which option is cheaper
- Updated
Leasing
Tap to type or drag sideways
You can also drag the chart below
Buying
Estimated resale value after 36 months
Interest, kilometres and extra costsoptional – makes the comparison more precise
Loan interest when financing or interest your money would earn if invested (applies to purchase price and down payment)
Compared with the agreed mileage at return
Delivery, registration, return inspection and damage
Delivery, registration
Leasing is €800 cheaper
From a term of 41 months, buying would be cheaper – with the same residual value.
Difference in total cost
€800
€800Leasing costs you €9,200 over 36 months; buying costs €10,000 after the residual value.
Leasingcheaper
- Down payment
- €2,000
- 36 payments of €200
- + €7,200
- Total leasing cost
- €9,200
Buying
- Purchase price
- €25,000
- Residual value after the term
- − €15,000
- Net cost of buying
- €10,000
RZ-26 · headon.pro
Cost by term
Drag the chart to change the term. Where the lines cross, buying becomes cheaper.
How this was calculated
A pure cost comparison of the amounts entered (nominal, without discounting). Tax benefits (e.g. business expenses for leasing, depreciation for buying) and financing interest for a credit-financed purchase are not included. The residual value only counts for buying (mileage leasing without residual-value risk for you).
Leasing or Buying: The Honest Cost Comparison
Total costs, hidden fees and tax aspects
The decision between leasing and buying is easiest to make by comparing total costs. Total leasing cost = down payment + monthly rate × term. Net purchase cost = purchase price − residual value after the term. If the total leasing amount is lower, leasing is mathematically cheaper – provided no hidden costs such as excess-mileage charges or return fees are added.
With buying, you pay the purchase price once (possibly financed through a loan) and own the vehicle. After the period of use, you can resell it. The residual value after 3 years is typically 40–65% of the purchase price, depending on make, model and condition. Popular models (e.g. VW Golf, Toyota Corolla) tend to have higher residual values than niche vehicles. Electric cars currently show inconsistent residual values – some models lose value sharply, others hold their value well.
For self-employed people and businesses, leasing offers a clear tax advantage: the monthly leasing rate is fully deductible as a business expense when the vehicle is used for business purposes. With a rate of €400/month, a business owner with a 30% tax rate effectively saves €120/month in taxes. When buying, depreciation is claimed instead (straight-line depreciation over 6 years for cars in Germany). This advantage does not apply to private individuals.
An often underestimated factor is flexibility: leasing lets you get a new vehicle every 2–4 years without the hassle of reselling, but offers little scope for early contract termination without penalty fees. Buying gives you full ownership freedom – no mileage limit, no effort at return, free choice of modifications and accessories. For high-mileage drivers (over 20,000 km/year), leasing quickly becomes expensive due to excess-mileage charges.
Leasing vs. Buying: Pros and Cons
Decision Factors at a Glance
- Leasing: always a new car
- A modern vehicle with the latest technology and warranty every 3–4 years
- Buying: full ownership freedom
- No mileage limit, no return conditions, free customization
- Leasing: tax-deductible
- For business owners: the rate is fully deductible as a business expense
- Buying: no extra costs
- No penalty fees for early termination or excess mileage
- Leasing: low capital outlay
- No large capital tied up; liquidity is preserved
- Buying: the residual value is yours
- The resale proceeds at the end fully benefit you
Calculation examples
- Down payment
- €2,000
- Monthly rate × 36
- + €7,200
- Total leasing cost
- €9,200
- Purchase price
- €25,000
- – Residual value after 36 months
- − €15,000
- Net purchase cost
- €10,000
- Savings from leasing
- €800
- Down payment
- €3,000
- Monthly rate × 48
- + €16,800
- Total leasing cost
- €19,800
- Purchase price
- €30,000
- – Residual value after 48 months
- − €14,000
- Net purchase cost
- €16,000
- Savings from buying
- €3,800
Frequently asked questions about the leasing vs. buying calculator
Everything about leasing costs, residual value and making the right decision
How does the calculator work out the total leasing costs?
The total leasing costs are calculated as: down payment (special payment) + monthly rate × term in months. With a down payment of €2,000, a rate of €200/month and a 36-month term, this gives: 2,000 + 200 × 36 = €9,200. Not included are costs for insurance, vehicle tax, maintenance and tyres (which may be covered under full-service leasing contracts, depending on the terms).
What is the net purchase cost in the comparison?
The net purchase cost (also: effective capital outlay) is calculated as: purchase price minus residual value after the comparable term. With a purchase price of €25,000 and a residual value of €15,000 after 36 months, the net cost is €10,000. The residual value is the estimated resale value of the vehicle after the term of the comparable leasing contract.
When is leasing worth it compared to buying?
Leasing is financially cheaper when the total leasing costs are lower than the purchase price minus the residual value. In practice, it is particularly worthwhile when: you want a new vehicle regularly (every 3 years), you're a business owner who can deduct the leasing rate as a business expense, the vehicle's residual value drops sharply (e.g. for models with high depreciation), and you don't want to tie up capital.
What hidden costs are there with leasing?
Watch out for: excess-mileage charges (typically €0.08–0.15/km over the included mileage allowance), return charges for excessive wear (scratches, dents, tyre wear), GAP insurance (recommended in case the vehicle is stolen or written off, since comprehensive insurance only pays the current market value), delivery fees and possible arrangement fees. These extra costs are often underestimated in a simple cost comparison.
Can I take over a leased vehicle at the end of the contract?
Yes, with finance leasing (residual-value leasing), there is often a purchase option at the contractually agreed residual value at the end of the term. With mileage leasing (the most common private leasing model), this option is rarely available; the vehicle goes back to the leasing company. If you want to use the vehicle long-term, buying it outright is usually cheaper than taking over a leased vehicle.