Set the same horizon for both scenarios
Compare the same number of months. Include lease fees and return charges on one side and purchase price, financing, maintenance, and residual value on the other.
Use /vehicle-cost-per-mile-calculator/ afterward if you also need cost per mile.
Residual value is not a free benefit
A purchased vehicle may retain value, but the estimate depends on mileage, condition, market prices, and when you sell. Enter a conservative residual value and run a sensitivity scenario.
Do not treat a payment alone as total ownership cost.
Tax method remains a separate decision
Standard vs. actual mileage compares tax arithmetic, not financing contracts. A lease or purchase decision should not be made solely from a tax deduction headline.
Frequently asked questions
Does leasing automatically make delivery cheaper?
No. Compare the full horizon including fees, mileage limits, return costs, and cash flow.
Should I subtract residual value?
The model subtracts the entered residual value from purchase-side cost because it represents remaining value at the horizon; actual resale can differ.
Does this decide which tax method I may use?
No. Tax method eligibility and lease-specific rules need current IRS guidance or professional advice.
Official sources
See methodology for formulas, source status, assumptions, and known limits.