Fleet Lease Versus Buy Cost CalculatorFree online financial calculator — instant results, no sign-up
Compare undiscounted fleet lease costs with cash purchase costs net of resale value.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Fleet Lease Versus Buy Cost Calculator
The Fleet Lease Versus Buy Cost Calculator compares the undiscounted cost of leasing a fleet with buying the same number of vehicles for cash and selling them at the end of the comparison period. It combines monthly lease payments and upfront lease costs, then compares that total with purchase costs net of resale value. The difference shows which option costs less under the assumptions entered.
- Vehicle count (vehicles)
- The number of vehicles to lease or buy, measured in vehicles, with a default of 5.
- Purchase price per vehicle ($)
- The cash purchase price for each vehicle, in dollars, with a default of $35,000.
- Resale value per vehicle ($)
- The expected sale proceeds for each purchased vehicle at the end of the horizon, in dollars, with a default of $18,000.
- Monthly lease per vehicle ($)
- The monthly lease payment for each vehicle, in dollars per month, with a default of $550.
- Horizon (months)
- The comparison period over which lease payments accumulate and at whose end purchased vehicles are assumed sold, measured in months, with a default of 36.
- Lease upfront cost per vehicle ($)
- The one-time upfront lease cost for each vehicle, in dollars, with a default of $1,500.
Formula and method
C_buy = N × (P − R); C_lease = N × (M × H + U); D = C_lease − C_buy.
- NNumber of vehicles in the fleet.
- PCash purchase price per vehicle, in dollars.
- RResale value per vehicle at the end of the horizon, in dollars.
- MMonthly lease payment per vehicle, in dollars per month.
- HComparison horizon, in months.
- UOne-time upfront lease cost per vehicle, in dollars.
- C_buyTotal fleet cash purchase cost net of resale proceeds, in dollars.
- C_leaseTotal fleet lease cost over the horizon, in dollars.
- DLease cost less net cash purchase cost, in dollars.
Subtract resale value from purchase price per vehicle and multiply by vehicle count. Separately, multiply the monthly lease payment by the horizon, add the upfront lease cost per vehicle, and multiply by vehicle count. Subtract the net purchase cost from the lease cost. With the defaults, C_buy = 5 × ($35,000 − $18,000) = $85,000.00; C_lease = 5 × ($550 × 36 + $1,500) = $106,500.00; D = $106,500.00 − $85,000.00 = $21,500.00. No cash flows are discounted.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Vehicle count5 vehicles
- Purchase price per vehicle35000 $
- Resale value per vehicle18000 $
- Monthly lease per vehicle550 $
- Horizon36 months
- Lease upfront cost per vehicle1500 $
Results
- Net cash purchase cost$85,000.00
- Lease cost$106,500.00
- Lease cost less purchase cost$21,500.00
How to use the Fleet Lease Versus Buy Cost Calculator
- 1Enter the number of vehicles being compared, using the same fleet size for leasing and buying.
- 2Enter the cash purchase price and expected end-of-horizon resale value per vehicle.
- 3Enter the monthly lease payment and one-time upfront lease cost per vehicle, avoiding double-counting any payment.
- 4Set the horizon in months and confirm that the lease payment assumptions and resale estimate apply to that period.
- 5Review the net cash purchase cost, lease cost, and lease-minus-purchase difference to identify the lower-cost option.
Reading your result
Net cash purchase cost is the fleet purchase outlay minus expected resale proceeds; the default result is $85,000.00, not the initial cash required to buy the fleet. Lease cost is the sum of monthly payments over the horizon and upfront lease costs for all vehicles; the default result is $106,500.00. Lease cost less purchase cost is $21,500.00 with the defaults, meaning leasing costs that much more than buying net of resale. A negative difference means leasing costs less, while zero means the modeled costs are equal.
Limitations
This is an undiscounted cost comparison, not a full total-cost-of-ownership or financing analysis. It assumes identical per-vehicle inputs, a constant fleet size, fixed monthly lease payments throughout the horizon, and sale of purchased vehicles at the stated resale value. It does not separately model loan interest, the opportunity cost of cash, taxes or tax deductions, maintenance, insurance, registration, downtime, disposal expenses, refundable deposits, lease-end buyouts, mileage penalties, excess-wear charges, or early-termination fees. Resale values are estimates, and a horizon that differs from the lease term may require costs this tool does not capture. Differences in payment timing and business liquidity are not reflected in the result.
Common questions
Why is the default net purchase cost $85,000.00 rather than the full fleet purchase price?+
Buying 5 vehicles at $35,000 each requires $175,000 initially. The calculator assumes they are later sold for $18,000 each, producing $90,000 in resale proceeds and reducing the modeled net cost to $85,000.00.
Does the $1,500 upfront lease cost apply once to the fleet or once per vehicle?+
It applies once per vehicle. With 5 vehicles, upfront lease costs total $7,500; adding those costs to 36 months of $550 monthly payments per vehicle gives a fleet lease cost of $106,500.00.
What resale value should I use for the 36-month default horizon?+
Use the expected sale proceeds per purchased vehicle after 36 months, considering anticipated mileage, condition, and market demand. The default is $18,000 per vehicle; a lower resale estimate raises the modeled purchase cost and makes leasing relatively more competitive.
Does the default $21,500.00 difference mean buying is always the better business decision?+
No. It means buying costs $21,500.00 less under the entered assumptions and included cost categories. Leasing may have different cash-flow, service, tax, or risk implications that this calculator does not value.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.