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Which asset option uses less present-value cash?
Compare an upfront purchase and terminal resale with equal monthly lease payments.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Purchase cash price
- $250,000
- Net resale value at horizon
- $80,000
- Monthly lease cash payment
- $5,000
- Lease upfront non-refundable fees
- $10,000
- Comparison horizon
- 48 months
- Annual effective discount rate
- 10 %
Present-value advantage of leasing
Example result only, not a forecast or promise.
- Purchase net present-value cost
- $195,359
- Lease present-value cost
- $208,759
- Undiscounted lease payments & upfront fees
- $250,000
What to do with this result
Align maintenance, insurance, residual obligations and end-of-term rights; financing and tax treatment are not included.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Buy PV = purchase − terminal resale / (1 + annual rate)^(months / 12). Lease PV = upfront fee + sum(monthly payments discounted at effective monthly rate).
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Planning scenarios are not lending, investment, tax or legal advice. Rates, prices, probabilities and transaction terms are supplied assumptions.