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Lease, finance, or pay cash — which leaves you wealthier?

See which way to pay for your next car actually wins. Accounts for HYSA opportunity cost, depreciation, and cumulative cash out over your hold window.

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Vehicle & Hold

Vehicle class
6

Lease

36

Finance

60

Best path over 6 years:

cash

beats the worst path by $20,879 in net wealth at year 6.

Over 6 years, cash leaves you $20,879 ahead of lease. Your auto-loan APR (7.0%) is higher than your HYSA APY (3.5%). Paying interest costs more than your cash earns sitting idle, so the financing edge shrinks.

Net wealth breakdown at year 6

Cumulative cash out over time

cash

Net wealth at year 6
-$66,837
Total cash out
$74,720
Asset value
$17,053
HYSA pool
-$9,170

finance

Net wealth at year 6
-$68,544
Total cash out
$81,490
Asset value
$17,053
HYSA pool
-$4,107

lease

Net wealth at year 6
-$87,716
Total cash out
$84,055
Asset value
$0
HYSA pool
-$3,661
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How it works

Each financing path starts with the same capital pool — vehicle price plus expected ownership reserves. The cash path sinks that pool on day one; the finance path keeps most of it invested while making monthly loan payments; the lease path keeps even more invested but ends with zero equity.

We track three things over your hold window: every dollar that leaves your pocket, the value of the asset you still hold at the end, and the HYSA growth you forgo by sinking cash up front. Net wealth at year N is what determines the winner — not the monthly payment you see on the dealer's screen.

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Compound Interest Visualizer

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Buy Now, Pay Later Calculator

Another 'small monthly payment' decision where the true cost is hidden

Learn more

→ Lease vs Finance vs Cash: The HYSA Trick Banks Hate

Frequently Asked Questions

Why does the calculator make me enter a HYSA APY?
Because every dollar you put into a car is a dollar you didn't put in a high-yield savings account. The HYSA APY is your opportunity-cost rate — what your money would earn if you didn't sink it into the vehicle. Without it, lease/finance/cash comparisons are dishonest.
Is paying cash always the smartest move?
No. When your auto-loan APR is below your HYSA APY (or expected investment return), financing wins on net wealth even after paying interest. That's because your cash keeps earning while the loan keeps cheaper money working in the asset. The calculator surfaces this directly.
Why does lease come out worst so often?
Because the lease path ends with zero asset value. Cash and finance leave you holding equity (the residual car value); leasing returns the keys. Lease can still win if you re-lease often anyway and the per-month outlay frees up enough cash to grow elsewhere — but the math has to clear that bar.
What hold window should I pick?
Pick how long you actually plan to keep this car (or a series of leases). Most US households hold a car ~6 years. Shorter windows favor lease; longer windows favor cash and finance.
How do you compute residual value?
We apply an industry-standard depreciation curve: 20% year 1, 15% year 2, 12% years 3-5, 8% year 6+. EVs use a steeper year-1 rate (28%).
Does this include sales tax?
Yes — sales tax is applied once to the full vehicle price at purchase (or at lease inception). Some states tax monthly lease payments instead, which this calculator doesn't model. Use the advanced toggle to override the tax rate.