The Lease vs FD Calculator is our flagship tool. It answers one question with precision: if you put your down payment and monthly lease savings into a Fixed Deposit instead of committing to a lease, which option grows your wealth more over the same period?
What You're Actually Comparing
A lease ties up capital in monthly repayments. An FD puts that same capital to work at a compounding interest rate. The tool calculates both scenarios over your chosen tenure and tells you exactly where the break-even point is the month at which the FD option overtakes the lease option (or vice versa).
It also accounts for the vehicle's residual value at the end of the lease, giving you the true total cost of ownership rather than just the sum of repayments.
Key Inputs Explained
- Vehicle Price -> the on-road price you're financing, used to calculate interest exposure.
- Down Payment -> the amount you'd invest in an FD in the alternative scenario.
- Monthly Lease Amount -> your total monthly outgoing under the lease.
- FD Interest Rate -> the annual rate your deposit would earn (check your bank's current rates).
- Lease Tenure -> the number of months your lease runs.
- Residual Value -> what the vehicle is worth at lease end (typically 20–40% of original price).
- Withholding Tax on FD -> applicable in many markets; reduces your effective FD return.
Reading the Break-Even Chart
The interactive chart plots two lines: cumulative lease cost and cumulative FD value over time. Where they cross is your break-even point. If the FD line stays above the lease cost line throughout the tenure, investing is the better financial decision for that specific set of inputs.
Hover over any point on the chart to see the exact values for that month. This is especially useful when you're negotiating lease terms. You can adjust inputs in real-time and watch the break-even shift.
Try adjusting the FD interest rate by just 1-2%. You'll be surprised how significantly it moves the break-even point.
Using the Yearly Breakdown Table
Below the chart, a year-by-year table gives you the granular numbers: FD balance at each year-end, cumulative lease cost, and the net position. This table is exportable as a PDF report, useful if you're presenting the analysis to a financial advisor or a family member.