Compare the costs of financing a car purchase and leasing with this buy vs. lease car analysis template for Excel. The workbook has fields for upfront payments, loan and lease terms, resale value and a discount rate, followed by present-value cost summaries.
Review the formulas before relying on a recommendation. The original file has limitations involving payment timing, zero rates, comparison periods and tax calculations. It is a starting model, not a validated all-in vehicle cost calculator. The download below remains unchanged; use the checks and independent example on this page to understand what needs review.
Download the Buy vs. Lease Car Analysis Spreadsheet
Format: ZIP containing one Excel XLSX workbook. It includes a visible Template sheet and a hidden configuration sheet. The main layout compares Lease and Buy inputs, initial costs, discounted financing costs and a present-value difference. A separate section contains tax-related fields.
Extract the archive, open it in Excel and save a working copy. Replace the vehicle details and enter figures from actual written quotes. Keep one currency and check whether terms are entered in months. A separate Word or PDF version is not included.
Buying and leasing: compare the full arrangement
Financing a purchase involves paying for ownership and building equity as the loan is repaid. Leasing generally pays for use during a specified term; ownership requires a separate purchase option where available. Do not compare only monthly payments.
The US Consumer Financial Protection Bureau’s buying-versus-leasing guidance explains the importance of mileage limits, wear charges, early termination and purchase options. Use the actual contract terms rather than assuming every lease has the same limits or buyout rights.
Inputs included in the workbook
Area
Original fields
What to check
Lease upfront amounts
Tax/title, security deposit, first payment, capital cost reduction and prepaid last payment
Separate refundable deposits and avoid counting prepaid installments twice.
Lease terms
Monthly payment, term and discount rate
Confirm months, payment timing and annual rate entry.
Purchase
Price, tax/title, down payment, loan term and rate
Use the negotiated price and actual financed amount, not necessarily MSRP.
End value
Lease-end selling price and purchase resale value
Distinguish estimated market value from a contractual buyout price.
Cost summary
Initial costs, financing costs, refund/resale present values and difference
Use a common horizon and verify every cash-flow date.
Tax section
Tax bracket, business use, sales tax and potential deductions/savings
Do not treat generic labels or formulas as current tax rules.
Buying-column fields link to several lease-side entries by default, including price, fees, term and resale assumptions. Review those links instead of assuming both quotes genuinely share those values.
Formula limitations to address before use
1. First and prepaid lease payments need a clear timeline
D27 includes the first month’s payment in upfront costs. D28 then uses the ordinary-annuity PV function over the lease term, reducing the period count only when the last payment is prepaid. This does not reconcile the first payment already paid upfront. Lay out each actual installment date and exclude prepaid payments from the remaining schedule before discounting it.
2. Zero-rate cases are not handled consistently
The lease financing formula in D28 requires a nonzero discount rate; with a valid positive payment and a 0% discount rate, it returns blank instead of the undiscounted payment total. The loan-payment formula in G19 also requires a nonzero loan rate, leaving a valid 0% financing offer blank. These cases need explicit handling; a blank is not a zero-cost result.
3. Different terms create an inconsistent comparison
G28 discounts payments over the purchase loan term, but G23 discounts resale using the lease term. If those terms differ, the costs and end value are not aligned. Choose one comparison date, include purchase payments made by that date, and account for any remaining loan balance at that date.
4. Resale and other costs require additional work
The loan-payment formula finances price less down payment, with tax/title costs treated upfront elsewhere. If your quote finances those charges or includes a balloon, the schedule needs adjustment. There are no dedicated inputs for fuel, insurance, maintenance, excess mileage, return-condition charges or a full lease-buyout scenario.
5. The tax section is not a reliable tax-savings calculation
D46 and G46 multiply potential deductions by (1-tax bracket) and business-use percentage. That is not a simple tax-rate-based savings calculation, and the underlying deduction totals are not verified as legally eligible. The tax figures also do not feed into the main G32 comparison.
Do not repair this by changing a percentage alone. Eligibility, methods, limits and timing need separate review. For US business use, consult the IRS business-use-of-car guidance; other jurisdictions have their own rules. Keep any reviewed tax analysis distinct from the original pre-tax comparison.
Build a comparison over the same time period
Choose how long you expect to use the vehicle, such as 36 months. Compare equivalent vehicles, usage and mileage, then record these amounts at their actual dates:
Purchase: Upfront payments, installments during the period, operating costs, end-date loan payoff and selling costs, less resale proceeds.
Lease returned at the end: Nonrefundable upfront amounts, installments not already counted, operating costs, end fees and expected usage charges, less refundable deposits returned.
Lease followed by purchase: Model the buyout, fees, financing and resulting ownership separately. Do not combine a return scenario with a purchase scenario.
If keeping the purchased car instead of selling it, show its estimated remaining value as an end-date asset rather than pretending cash was received. For present-value analysis, discount each cash flow consistently and identify the assumed payment dates.
Worked example: compare 36 months without discounting
This fictional example illustrates the structure, not actual offers or the original workbook’s output. The purchase loan is fully repaid by month 36. The lease is returned then, and its upfront amount excludes the 36 installments listed separately. All amounts are USD.
Cost over 36 months
Buy
Lease and return
Nonrefundable upfront amount
3,000
2,000
36 monthly payments
520 × 36 = 18,720
350 × 36 = 12,600
Additional included fees
600
400
Resale proceeds, net of selling costs
−16,000
0
Net cost for included items
6,320
15,000
Buying is lower by 8,680 for these invented inputs. The difference depends heavily on the assumed resale value. If resale falls to 12,000, the purchase cost becomes 10,320. Include fuel, insurance, maintenance, taxes and any other relevant differences before treating either result as a total-cost comparison.
If the purchase loan were not fully repaid at month 36, its remaining payoff would also need to be included. Subtracting the full resale value without settling that balance would overstate the ownership benefit.
How to interpret the original difference field
G32 calculates G30-D30: modeled buying cost minus modeled leasing cost. A positive number favors leasing within that model; a negative number favors buying. This is not an automatic recommendation, particularly before the formula and scope issues above have been addressed.
Keep affordability separate from overall cost. Compare the upfront cash requirement and monthly commitments with your budget, then test resale value, mileage, repair costs and early-exit scenarios.
Related documents for your comparison
Use the price comparison templates to organize comparable quotes and exclusions. For a business purchase, a cost benefit analysis can document assumptions and nonfinancial considerations alongside the cost model.
After selecting a purchase arrangement, review the relevant vehicle purchase agreement examples. The spreadsheet compares assumptions; it does not establish the agreed sale, finance or lease terms.
Frequently asked questions
Is this a free Excel template?
The download provides an XLSX workbook inside a ZIP file. Review the site’s usage terms. The original formulas need the checks described above before reliance.
Does it compare cash buying and financing automatically?
The buying side is structured around a loan-payment calculation. A cash purchase requires a different cash-flow schedule, and the existing zero-rate checks do not make it a ready-made cash-buy model.
Does a lower monthly lease payment mean leasing is cheaper?
No. Compare upfront amounts, all relevant costs and the ownership position at the same end date. Mileage, return charges and any loan payoff can affect the result.
Does the spreadsheet calculate excess-mileage charges?
No dedicated mileage allowance or excess-mileage calculation is included. Add a separate estimate based on your expected driving and the actual contract.
Are the tax savings included in the main result?
No. The original tax section is separate from G32 and has questionable assumptions and arithmetic. Do not describe the main result as an after-tax comparison.
Can I import it into Google Sheets?
You can try importing the XLSX, but verify formulas, cell protections and formatting. Importing does not correct the original model’s logic.
