🇮🇳 Finance Calculator
Lease vs Buy Calculator
Compare the cost of leasing (common for corporate/fleet arrangements in India) vs financing a car with a loan over the same period - monthly payments, total spend, and what you end up owning.
Vehicle Details
India has no separate car sales tax; GST applies to lease/finance charges.
🔑 Lease
Multiply by 2400 for approx. APR. (0.00150 ≈ 3.6% APR)
Monthly Lease Payment
₹0
🛒 Buy (Loan)
Your car's value when the lease would end - what you'd own.
Monthly EMI
₹0
Buying saves you more
Net cost to buy is lower over the same period when you account for the car's resale value.
You save
₹0
How lease payments are calculated.
Finance Charge = (Cap Cost + Residual) × Money Factor
Monthly Payment = Depreciation + Finance Charge + GST
APR ≈ Money Factor × 2400
Residual = Ex-Showroom Price × Residual %
Note: retail car leasing is a small, mostly corporate/fleet market in India, unlike the US where individual consumer leasing is mainstream. Terms, fees, and buyout options vary widely by leasing company - treat this as a generic cost comparison, not a quote from a specific provider.
Frequently asked questions.
Is leasing common for individuals in India?
Not really - car leasing in India is mostly a corporate/fleet arrangement (companies leasing cars for employees as a salary perk, or businesses leasing commercial fleets) rather than a mainstream retail option like in the US. Most individual buyers finance through a car loan instead. This calculator compares the two structures generically so you can see the math either way.
What is money factor in a lease?
Money factor is the lease equivalent of an interest rate. Multiply by 2400 to convert to an approximate APR. A money factor of 0.00125 equals roughly 3% APR. Always ask the leasing company to state it explicitly rather than just quoting a monthly figure.
What happens if I go over the mileage limit on a lease?
Fleet/corporate leases in India typically cap annual kilometers and charge a per-km penalty for going over - terms vary by leasing company, so always check the contract. Loan-financed cars have no such restriction since you own the vehicle outright.
Can I buy the car at the end of a lease?
In corporate/fleet leases this is sometimes offered as a buyout option at the depreciated (residual) value. Whether this is available and the exact terms depend entirely on the leasing company's policy - it is not standardized in India the way it is in the US.
Who should consider leasing instead of financing in India?
Leasing mainly suits salaried employees whose employer offers a car-lease benefit (which can have tax advantages under the salary structure) or businesses that want predictable fleet costs without owning vehicles. Individual buyers who want to own the car outright are almost always better served by a bank/NBFC car loan.
How do EMI and lease payments compare?
A loan EMI includes principal repayment (building your equity in the car) plus interest. A lease payment covers only the vehicle's depreciation over the lease term plus a finance charge - you build no ownership stake. Over a long ownership period, financing is usually cheaper once you account for the resale value you keep.