Formula used
Current monthly car cash cost = payroll lease deduction − payroll-confirmed tax saving + other running costs. All options run from today through the same remaining lease horizon. Net economic car cost = future cash paid + loan debt still owed at the end − retained car value at that date. Available cash = opening cash + monthly car-budget allocations − option cash outflows. Early buyout, return and continuation use separate all-in quotes. A buyout loan uses a fixed monthly reducing-balance schedule; any loan still unpaid at the common end date remains a liability.
Example calculation
A ₹28,000 payroll deduction, ₹6,000 confirmed monthly tax saving and ₹2,000 extra running cost make the current car cash cost ₹24,000 per month. An ₹8,50,000 all-in early buyout with ₹2,00,000 down requires a ₹6,50,000 loan. If that loan extends past the original lease end, the comparison includes the remaining debt as well as the car’s estimated value. Figures are illustrative contract assumptions.
How to use this calculator
- Enter remaining lease months, intended exit month, opening cash and a monthly car budget after other household costs.
- Copy the payroll deduction and confirmed tax saving, then choose whether the original lease ends in a buyout or return.
- Enter an all-in early buyout quote and choose cash or a loan with its actual rate and term.
- Enter the alternative all-in return settlement and replacement transport cost. Add continuation only if permitted.
- Compare the common-end-date car cost and monthly cash reserve, then download the report for discussion with HR or the lessor.
Important assumptions
- The comparison starts today and excludes past payments, salary changes, career benefits and investment returns.
- Exit follows that month’s normal lease payment; month 0 means now. New running costs and loan EMIs begin the following month.
- Settlement quotes include all applicable fees and taxes. Remaining lease rentals must not be added a second time.
- Payroll tax saving is a confirmed input, not an automatically computed statutory deduction or a flat tax-bracket assumption.
- The car’s end value reduces economic cost but is not spendable cash. Remaining buyout-loan debt is retained at the comparison end.
- Cash reserves are checked today and at month ends, not at every intramonth payment date.
Common mistakes to avoid
- Comparing a 48-month buyout loan with a shorter lease horizon while ignoring the debt still owed at that horizon.
- Treating an estimated resale value as cash already available to pay a settlement.
- Adding the remaining lease rentals to a settlement quote that already includes them.
- Assuming a lease or payroll tax benefit continues after leaving the employer.
- Changing the exit month without obtaining revised settlement quotes.
The resignation date can change the car decision
A company lease can look affordable during employment because the monthly deduction, included services and payroll treatment are bundled together. Leaving the employer can change that arrangement. Ask which paths are actually permitted before comparing amounts. This calculator shows continuation only when you confirm that the lessor or employer allows it.
Ask for two separate settlement quotes
An early buyout lets you keep the car, while a return or surrender settlement lets you give it back under the contract. They need not have the same amount. Request written, dated, all-in quotes that identify taxes, charges and outstanding obligations. The model treats each entered quote as complete, so it does not add the remaining lease rentals again.
A buyout loan can hide cost beyond the lease end
A smaller EMI can make a buyout appear cheap if the loan runs longer than the comparison. The model counts payments made within the horizon and adds the loan balance still owed at the end. It then subtracts the car value only where you own the car. This creates a common-date comparison without pretending that unpaid debt has disappeared.
Economic cost and available cash answer different questions
A path can have an attractive net cost and still require more settlement cash than you can spare. The reserve chart starts with your accessible cash, adds the monthly car budget and subtracts the selected arrangement’s bills. Car value is kept outside that chart. The reserve shortfall tells you how much additional opening cash would have been needed under the same timing assumptions.
Use payroll’s actual tax-saving figure
A marginal tax bracket applied to an entire lease deduction can misstate the take-home effect. Ask payroll for the difference under your salary structure and applicable rules. Enter the confirmed monthly benefit here, or zero while it is uncertain. This avoids presenting every corporate lease as having the same tax advantage.
Before choosing return, buyout or continuation
Check ownership transfer, insurance, maintenance, fuel, the written settlement date and whether loan finance is approved. Replacement transport may be cheaper but provide different convenience. A job change can also increase salary or improve career prospects; those effects belong in a salary comparison and are intentionally outside this car-only calculation.
Source and methodology
The model uses user-entered contract and payroll quotes with an explicit monthly cash schedule and buyout-loan amortisation. ORIX and Ayvens describe different employee lease arrangements and end-of-term choices; these examples do not establish a universal right to transfer, surrender or buy a leased car. The signed agreement, lessor’s quote and payroll confirmation control the actual treatment. Calculations and downloadable reports are generated in your browser.
Calculation version: 2026-09-23.1 · Facts checked: 2026-09-23
Next review trigger: Changes to lessor transfer or settlement terms, payroll perquisite rules, or source pages; the model continues to require the actual quote.