Buy vs Lease a Laptop Calculator: Which Costs Less?

Buy or lease a laptop: which costs less?

On the defaults — a $1,500.00 laptop, a $500.00 resale value after 24 months, and a $55.00-a-month lease — the net cost of buying is $1,000.00 ($1,500.00 − $500.00), or $41.67 a month, and the total cost of leasing is $1,320.00 ($55.00 × 24), so BUYING wins by $320.00. Laptops lose value fast — a laptop bought for $1,500 is often worth roughly a third of that after two years of use; laptop lease and rental plans typically charge $40–$75 a month for a mid-range machine; a leased laptop goes back at the end of the term, so there is nothing to resell; a bought laptop is yours to sell, gift, or keep using past the term.

Five things about the model are worth stating plainly. First, the net cost of buying is the price minus the resale value — $1,500.00 − $500.00 = $1,000.00. Second, the total cost of leasing is the monthly payment times the months — $55.00 × 24 = $1,320.00. Third, the gap is the leasing total minus the buying net — $1,320.00 − $1,000.00 = +$320.00, so buying wins. Fourth, the buying monthly-equivalent is the buying net divided by the months — $1,000.00 ÷ 24 = $41.67 a month, against $55.00 a month to lease. And fifth, the resale value is the line that decides everything — a $1,500 laptop resold for $500 costs $1,000 net, but resold for $180 it costs $1,320 net, exactly the lease total, a tie; all listed in Accuracy & limitations.

The worked example, line by line

Setup: $1,500.00 purchase price, $500.00 resale value, $55.00-a-month lease, 24 months.

Line 1 — the net cost of buying. The buying net is $1,500.00 − $500.00 = $1,000.00, or $1,000.00 ÷ 24 = $41.67 a month.

Line 2 — the total cost of leasing. The leasing total is $55.00 × 24 = $1,320.00.

Line 3 — the gap and the winner. The gap is $1,320.00 − $1,000.00 = +$320.00, so BUYING wins by $320.00.

Line 4 — the flip. At 18 months the leasing total is $990.00 and leasing still wins by $10.00; at 19 months the leasing total is $1,045.00 and buying wins by $45.00 — the flip happens at 19 months.

Every branch, checked

$2,000.00 purchase price: Buy a $2,000.00 laptop and resell it for $500.00 after 24 months, or lease it at $55.00 a month: buying net $1,500.00 ($62.50 a month), leasing $1,320.00, gap -$180.00 — LEASING wins by $180.00 — at a $2,000.00 price the buying net is $1,500.00, so leasing wins by $180.00.

$800.00 resale value: Buy a $1,500.00 laptop and resell it for $800.00 after 24 months, or lease it at $55.00 a month: buying net $700.00 ($29.17 a month), leasing $1,320.00, gap +$620.00 — BUYING wins by $620.00 — at an $800.00 resale value the buying net is only $700.00, so buying wins by $620.00.

$75.00 a month lease: Buy a $1,500.00 laptop and resell it for $500.00 after 24 months, or lease it at $75.00 a month: buying net $1,000.00 ($41.67 a month), leasing $1,800.00, gap +$800.00 — BUYING wins by $800.00 — at a $75.00 lease the leasing total is $1,800.00, so buying wins by $800.00.

36-month term: Buy a $1,500.00 laptop and resell it for $500.00 after 36 months, or lease it at $55.00 a month: buying net $1,000.00 ($27.78 a month), leasing $1,980.00, gap +$980.00 — BUYING wins by $980.00 — over 36 months the leasing total is $1,980.00, so buying wins by $980.00.

12-month term: Buy a $1,500.00 laptop and resell it for $500.00 after 12 months, or lease it at $55.00 a month: buying net $1,000.00 ($83.33 a month), leasing $660.00, gap -$340.00 — LEASING wins by $340.00 — over 12 months the leasing total is only $660.00, so leasing wins by $340.00.

$1,000.00 price, $400.00 resale: Buy a $1,000.00 laptop and resell it for $400.00 after 24 months, or lease it at $55.00 a month: buying net $600.00 ($25.00 a month), leasing $1,320.00, gap +$720.00 — BUYING wins by $720.00 — a $1,000.00 laptop resold for $400.00 costs $600.00 net, so buying wins by $720.00.

$40.00 a month lease: Buy a $1,500.00 laptop and resell it for $500.00 after 24 months, or lease it at $40.00 a month: buying net $1,000.00 ($41.67 a month), leasing $960.00, gap -$40.00 — LEASING wins by $40.00 — at a $40.00 lease the leasing total is $960.00, so leasing wins by $40.00.

The reverses, worked backwards

Lease payment for a lease total exactly equal to the $1,000.00 buying net (24 months): $41.67 — the exact payment is 41.6667. At the displayed $41.67 the lease total is $1,000.08, the gap is +$0.08 — BUYING wins by $0.08 (not a tie — the rounded lease total is 8 cents over); at $41.66 the lease total is $999.84, the gap is −$0.16 — LEASING wins by $0.16. $41.67 is the smallest cent amount whose lease total reaches the buying net. The star is DOLLARS.

Resale value for an exact tie: $180.00 — the exact resale value is 180.0000. At the displayed $180.00 the buying net is $1,320.00, the lease total is $1,320.00, the gap is $0.00 — a Tie (buying monthly-equivalent $55.00, the same as the lease). The star is DOLLARS.

Months until buying wins: the longest term where leasing still wins is 18 months (lease total $990.00, gap −$10.00 — LEASING wins by $10.00); the shortest term where buying wins is 19 months (lease total $1,045.00, gap +$45.00 — BUYING wins by $45.00; buying monthly-equivalent $52.63). The star is MONTHS.

Purchase price for an exact tie (resale $500.00, lease $55.00, 24 months): $1,820.00 — the exact price is 1820.0000. At the displayed $1,820.00 the buying net is $1,320.00, the gap is $0.00 — a Tie. The star is DOLLARS.

Lease payment so leasing wins by exactly $100.00 (24 months): $37.50 — the exact payment is 37.5000. At the displayed $37.50 the lease total is $900.00, the gap is −$100.00 — LEASING wins by $100.00. The star is DOLLARS.

Resale value so the buying monthly-equivalent is exactly $50.00 (24 months): $300.00 — the exact resale value is 300.0000. At the displayed $300.00 the buying net is $1,200.00, the monthly-equivalent is $50.00, the gap is +$120.00 — BUYING wins by $120.00. The star is DOLLARS.

What the defaults assume

The defaults are a $1,500.00 purchase price, a $500.00 resale value, a $55.00-a-month lease, and 24 months — buying net $1,000.00 ($41.67 a month), leasing total $1,320.00, gap +$320.00 — BUYING wins by $320.00. With a $2,000.00 purchase price, Buy a $2,000.00 laptop and resell it for $500.00 after 24 months, or lease it at $55.00 a month: buying net $1,500.00 ($62.50 a month), leasing $1,320.00, gap -$180.00 — LEASING wins by $180.00 — at a $2,000.00 price the buying net is $1,500.00, so leasing wins by $180.00. With a $800.00 resale value, Buy a $1,500.00 laptop and resell it for $800.00 after 24 months, or lease it at $55.00 a month: buying net $700.00 ($29.17 a month), leasing $1,320.00, gap +$620.00 — BUYING wins by $620.00 — at an $800.00 resale value the buying net is only $700.00, so buying wins by $620.00. With a $75.00 a month lease, Buy a $1,500.00 laptop and resell it for $500.00 after 24 months, or lease it at $75.00 a month: buying net $1,000.00 ($41.67 a month), leasing $1,800.00, gap +$800.00 — BUYING wins by $800.00 — at a $75.00 lease the leasing total is $1,800.00, so buying wins by $800.00. With a 36-month term, Buy a $1,500.00 laptop and resell it for $500.00 after 36 months, or lease it at $55.00 a month: buying net $1,000.00 ($27.78 a month), leasing $1,980.00, gap +$980.00 — BUYING wins by $980.00 — over 36 months the leasing total is $1,980.00, so buying wins by $980.00. With a 12-month term, Buy a $1,500.00 laptop and resell it for $500.00 after 12 months, or lease it at $55.00 a month: buying net $1,000.00 ($83.33 a month), leasing $660.00, gap -$340.00 — LEASING wins by $340.00 — over 12 months the leasing total is only $660.00, so leasing wins by $340.00. With a $1,000.00 price, $400.00 resale, Buy a $1,000.00 laptop and resell it for $400.00 after 24 months, or lease it at $55.00 a month: buying net $600.00 ($25.00 a month), leasing $1,320.00, gap +$720.00 — BUYING wins by $720.00 — a $1,000.00 laptop resold for $400.00 costs $600.00 net, so buying wins by $720.00. With a $40.00 a month lease, Buy a $1,500.00 laptop and resell it for $500.00 after 24 months, or lease it at $40.00 a month: buying net $1,000.00 ($41.67 a month), leasing $960.00, gap -$40.00 — LEASING wins by $40.00 — at a $40.00 lease the leasing total is $960.00, so leasing wins by $40.00. With a Resale = purchase price ($1,500.00), Buy a $1,500.00 laptop and resell it for $1,500.00 after 24 months, or lease it at $55.00 a month: buying net $0.00 ($0.00 a month), leasing $1,320.00, gap +$1,320.00 — BUYING wins by $1,320.00 — resale = price means the buying net is $0.00, so buying wins by the whole $1,320.00 lease total. With a Resale $0.00, Buy a $1,500.00 laptop and resell it for $0.00 after 24 months, or lease it at $55.00 a month: buying net $1,500.00 ($62.50 a month), leasing $1,320.00, gap -$180.00 — LEASING wins by $180.00 — a $0.00 resale value means the buying net is the full $1,500.00, so leasing wins by $180.00. With a Lease $0.00 a month, Buy a $1,500.00 laptop and resell it for $500.00 after 24 months, or lease it at $0.00 a month: buying net $1,000.00 ($41.67 a month), leasing $0.00, gap -$1,000.00 — LEASING wins by $1,000.00 — a $0.00 lease means the leasing total is $0.00, so leasing wins by $1,000.00. With a 1-month term, Buy a $1,500.00 laptop and resell it for $500.00 after 1 months, or lease it at $55.00 a month: buying net $1,000.00 ($1,000.00 a month), leasing $55.00, gap -$945.00 — LEASING wins by $945.00 — over 1 month the leasing total is $55.00 against a $1,000.00 buying monthly-equivalent, so leasing wins by $945.00. With a $3,000.00 price, $1,200.00 resale, Buy a $3,000.00 laptop and resell it for $1,200.00 after 24 months, or lease it at $55.00 a month: buying net $1,800.00 ($75.00 a month), leasing $1,320.00, gap -$480.00 — LEASING wins by $480.00 — a $3,000.00 laptop resold for $1,200.00 costs $1,800.00 net, so leasing wins by $480.00. With a 60-month term, Buy a $1,500.00 laptop and resell it for $500.00 after 60 months, or lease it at $55.00 a month: buying net $1,000.00 ($16.67 a month), leasing $3,300.00, gap +$2,300.00 — BUYING wins by $2,300.00 — over 60 months the leasing total is $3,300.00, so buying wins by $2,300.00. With a $800.00 price, $500.00 resale, Buy a $800.00 laptop and resell it for $500.00 after 24 months, or lease it at $55.00 a month: buying net $300.00 ($12.50 a month), leasing $1,320.00, gap +$1,020.00 — BUYING wins by $1,020.00 — an $800.00 laptop resold for $500.00 costs $300.00 net, so buying wins by $1,020.00.

Output · formula · meaning

Who uses this

• The student choosing a laptop for a two-year course: they learn buying a $1,500.00 laptop and reselling it for $500.00 costs $1,000.00 net against $1,320.00 to lease — and they check the 12-month branch to see that leasing wins if they only need it for a year.
• The freelancer whose laptop died mid-project: they learn a $40.00-a-month lease wins by $40.00 over 24 months — and they check the $41.67 reverse to see the lease payment where the two sides nearly tie.
• The parent buying a laptop for a teenager: they learn a $1,000.00 laptop resold for $400.00 costs $600.00 net — and they check the $180.00 reverse to see the resale value where buying and leasing tie exactly.
• The remote worker comparing a 36-month lease: they learn leasing for 36 months costs $1,980.00 against a $1,000.00 buying net — and they check the 19-month reverse to see when buying starts winning.

Accuracy & limitations

The math is first-principles: the net cost of buying is the purchase price minus the resale value, the total cost of leasing is the monthly lease payment times the months, the gap is the leasing total minus the buying net, and the buying monthly-equivalent is the buying net divided by the months — each rounded to cents half-up, and the gap is computed from the rounded totals, so a gap of exactly $0.00 is a Tie. What the model cannot do is price your actual laptop: laptops lose value fast — a laptop bought for $1,500 is often worth roughly a third of that after two years of use, but your model, condition, and timing decide the real resale value; laptop lease and rental plans typically charge $40–$75 a month for a mid-range machine, and the plan you are quoted may differ; a leased laptop goes back at the end of the term, so there is nothing to resell; the resale value you enter is what the laptop is worth at the END of the months you enter — if you change the months without changing the resale value, the comparison assumes the same resale value; the lease total ignores damage fees and the cost of being without a laptop if the lease ends early; the buy total ignores repairs after the warranty ends. Use it to find which side wins at your numbers — then check the real lease terms and the real resale value before you sign.

Frequently asked questions