Phone Buy vs Lease Calculator
Compare buying a phone outright against a lease or upgrade program over the same period — counting resale value on what you own.
How it works
Net cost to buy = phone price − resale value · Lease total = monthly × months + down · Difference = lease total − net buy cost
Leasing or an "upgrade" program keeps the monthly number small, but at the end you own nothing and start over. Buying costs more up front, yet the phone is an asset you can sell — so the fair comparison subtracts its resale value from the purchase price. When the bought phone still fetches a good resale price, buying usually wins; leasing appeals mainly if you insist on the newest model every year and value that over the money.
Worked example
A $999 phone that resells for $350 after 2 years has a net cost of $649. A lease at $33 a month for 24 months totals $792. Buying is about $143 cheaper over the period — and you still hold a phone worth $350 instead of returning it.
Frequently asked questions
Is leasing a phone ever cheaper?
It can be if the lease payment is low and the phone would have little resale value, or if the program bundles trade-ins and promotions. Enter the real numbers — including any down payment and the resale you would actually get — to see which wins for your case.
Why subtract resale value?
A bought phone is yours to sell; a leased one goes back. Ignoring resale overstates the cost of buying. Flagship phones especially hold meaningful value for two to three years, which tilts the math toward buying.
What about financing a purchase at 0%?
A 0% installment plan to buy is effectively buying — you still own and can resell the phone — so compare its total to the lease the same way. It only differs from paying cash if the plan carries interest or fees.
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Educational estimate, not financial advice.