The model compares choices over time.

The selected tier sets the starting vehicle price. When you switch tiers, related assumptions such as insurance, maintenance, loan term, and lease estimate are refreshed for that tier.

The ownership timeframe controls how many years the calculator shows in the chart and final comparison. It affects depreciation, cumulative payments, remaining loan balance, lease cost over time, and the separate investing opportunity cost estimate.

Car value drop per year estimates how much an owned vehicle may lose in value. The calculator uses compound depreciation, so each year is based on the previous year's value.

Cash purchase assumes the vehicle is paid for upfront. The ending car position compares the depreciated vehicle value with the upfront cash paid for the car.

Financing uses the down payment, loan term, APR, and estimated monthly payment. The net position includes depreciated vehicle value and subtracts remaining loan balance when applicable.

Leasing uses due at signing and monthly lease payments. Standard lease results show no owned vehicle asset at the end because the user does not own the car.

The main line chart is car-specific. Cash shows depreciated vehicle value minus upfront cash paid. Finance shows depreciated vehicle value minus remaining loan balance and cash paid so far. Lease shows no owned vehicle value and subtracts lease payments paid so far.

The investment return assumption estimates what the same relevant cash flows could become if invested instead. This is shown as a separate opportunity-cost view, not as part of the main car net position chart.

Real outcomes can vary because of taxes, fees, insurance quotes, actual financing terms, repair costs, market returns, vehicle resale value, lease rules, and personal cash flow. Use the calculator as a thinking aid, not as advice or a guarantee.

This calculator provides estimates for educational purposes only. It is not financial, legal, tax, insurance, lending, or vehicle-buying advice.

For more context, read about how much car you can afford, leasing versus buying, and car depreciation.