Work out lease vs own analysis instantly with clear inputs, formula shown and shareable results.
Comparing lease and own means valuing the capital tied up in ownership. Total leasing cost is straightforward, while ownership cost is running expenses plus the opportunity cost of the purchase price, taken here at eight percent a year. Any appreciation in the asset offsets that opportunity cost and should be assessed separately.
Lease cost
Total = annual lease cost x years
Ownership cost
Total = running cost x years + purchase price x opportunity rate x years
Total = annual lease cost x years. Comparing lease and own means valuing the capital tied up in ownership.
Because a mortgage payment includes principal repayment, which is saving rather than cost. Comparing it with rent systematically flatters leasing.
This calculator takes 4 inputs: Annual lease cost, Purchase price, Annual ownership running cost, Analysis period. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.