Lease vs Buy Furniture Cost Calculator

How This Tool Works

This calculator compares the total cost of leasing furniture versus buying it outright. It calculates the total lease cost over the lease term and compares it to the purchase price over your expected ownership period. This helps you make an informed decision based on your financial situation and how long you need the furniture.

Furniture leasing (rent-to-own) typically costs 2-3x the purchase price over the lease term. While it offers low upfront costs and flexibility, buying is usually more cost-effective for long-term needs. This calculator shows you the exact cost difference to help you decide.

Formula

The calculations are based on:

Total Lease Cost = Monthly Lease × Lease Term (months)
Lease Cost Per Year = Total Lease Cost / (Lease Term / 12)
Total Lease Over Years = Lease Cost Per Year × Ownership Years
Cost Difference = Total Lease Over Years - Purchase Price
Break-Even Months = Purchase Price / Monthly Lease

For example, $1,000 purchase, $100/month lease, 12 months, 5 years ownership:

Total Lease Cost = $100 × 12 = $1,200
Lease Cost Per Year = $1,200 / 1 = $1,200
Total Lease Over 5 Years = $1,200 × 5 = $6,000
Cost Difference = $6,000 - $1,000 = $5,000 (leasing costs more)

When to Lease vs Buy

• Lease If: Short-term need (under 2 years), temporary living situation, cannot afford upfront cost, need flexibility to return
• Buy If: Long-term need (2+ years), can afford upfront cost, want to own, want lower total cost, plan to keep furniture
• Consider Alternatives: Used furniture, furniture financing, credit cards with 0% APR, or saving up to buy outright
• College Students: Leasing may make sense for 4-year college if you can\'t bring furniture, but buying used is often cheaper
• Short-Term Renters: Leasing works if you move frequently, but consider buying if you\'ll stay 2+ years

FAQ

• Should I lease or buy furniture?
  Buying is usually cheaper long-term if you can afford the upfront cost. Leasing makes sense for short-term needs (under 2 years), temporary living situations, or when you cannot afford the purchase price upfront. This calculator compares total costs to help you decide based on your situation.
• Is furniture leasing worth it?
  Furniture leasing is worth it for short-term needs (college, temporary assignments, short-term rentals) where you need furniture for less than 2 years. For longer-term needs, buying is usually more cost-effective. Leasing often costs 2-3x the purchase price over the lease term.
• How much does furniture leasing cost?
  Furniture leasing typically costs 2-3x the purchase price over the lease term. For example, a $1,000 furniture set might cost $100/month for 12-18 months, totaling $1,200-$1,800. After the lease, you may have the option to buy or return the furniture.
• What are the pros and cons of leasing furniture?
  Pros: Low upfront cost, flexibility (can return), no long-term commitment, good for temporary situations. Cons: Much more expensive long-term, no ownership, limited selection, may have fees for damage or early termination, interest/financing charges.
• What are the pros and cons of buying furniture?
  Pros: Lower total cost, you own it, can sell later, no monthly payments after purchase, better selection. Cons: Higher upfront cost, responsible for maintenance/repairs, harder to change if you move or redecorate, may need financing.
• Is rent-to-own furniture a good deal?
  Rent-to-own furniture is rarely a good financial deal. It typically costs 2-3x the purchase price, includes high interest rates, and may have hidden fees. If you can afford it, buying with cash or financing is usually cheaper. Only consider rent-to-own if you need furniture short-term and cannot afford to buy.