After-Tax Adjusted Present Value Lease Calculator
RESULTS:								Copyright 2013 by W. Murray Bradford, CPA
In today's dollars, you should
Because this saves you
START HERE -- Replace the sample data with your data
Number of months for comparison of buy versus lease
Fair market value of vehicle your are considering buying/leasing
Amount you would pay to buy the vehicle, including taxes, etc.
Amount financed, if any
Interest rate on amount financed
Number of monthly payments in financing
Months for amortization of loan if longer than number of payments
Balloon payment (amount due at end of payment period, calculated)
Enter number (2-9) for type of vehicle from the table below
Use Section 179 deduction? How much? See limits in table below
Is vehicle NEW? Bonus depreciation is available. Enter 1 to use bonus, 2 for no
Estimate net sales proceeds from sale of vehicle at end of comparison period
Input Your Leasing Information in the white spaces below:
Initial cash outlay at lease signing for first month's rent
Initial cash outlay at lease signing for last month's rent
Initial cash outlay for security deposit (to be refunded at end of the lease)
Initial cash outlay for license, tag, title, documentation fees
Remaining initial cash outlay for rent reduction and lease acquisition
Total initial outlay at time of lease signing (calculated)
Number of monthly lease payments including first and last month
Amount of monthly lease payments
Payment due at end of lease (to walk away from lease)
Input tax and investment information below:
Tax bracket (tax on last dollar taxed--state, federal, and self-employment)
What rate of return do you earn on your money after taxes
		That's It. You're finished. Check your results at the top.
Vehicle type table
2 - New car 6,000 pounds or less curb weight
3 - Used car 6,000 pounds or less curb weight
4 - New pickup truck, SUV, or van with GVWR of 6,000 pounds or less
5 - Used pickup truck, SUV, or van with GVWR of 6,000 pounds or less
6 - New SUV or qualifying crossover vehicle with GVWR over 6,000 pounds
7 - Used SUV or qualifying crossover vehicle with GVWR over 6,000 pounds
8 - New pickup truck 6 foot bed (or qualifying van) GVWR over 6,000 pounds
9 - Used pickup truck 6 foot bed (or qualifying van) GVWR over 6,000 pounds
Section 179 limits
For vehicle types 2, 3, 4, 5, Section 179 deduction limited to the luxury limits
For vehicles types 6 and 7, Section 179 deduction limit $25,000
For vehicles types 8 and 9, Section 179 deductions limit $500,000
		Summary of lease versus buy calculations we made to get your results above
		Buy
		Cash paid at purchase							Add
		PV of total monthly payments to buy the vehicle, if financed							Add
		PV of tax savings from interest deductions							Subtract
		PV of tax savings from depreciation							Subtract
		PV of expected cash from sale of the vehicle							Subtract
		PV of tax benefit if sold at a loss or tax detriment if sold at a profit						Add or Subtract
		After-tax adjusted present-value cost to buy the vehicle and use it in business							Total
		PV If You Lease
		Cash paid at lease signing							Add
		PV of total monthly lease payments							Add			Last 1=Yes
		PV of security deposit at end of lease							Subtract
		PV of tax savings from monthly lease payments							Subtract
		PV of tax detriment from lease inclusion amounts							Add
		PV of payments due at the end of the lease term to walk away from the vehicle							Subtract
		PV of tax savings from walk-away payment							Add
		After-tax adjusted present-value cost to lease the vehicle and use it in business							Total
Loan Amortization					Present value of payments				Present value of interest deduction
Months for loan amortization					PV of payoff				Cum Interest
Month for end of loan value					Payments				PV of cumulative int
Principal amount financed					Total
Annual interest rate					PV rate
Loan payoff amount
Month	Beg Amt	Interest	Pmt	End Amt	Cum Int	Tax Ben
1				$24,788		$36
2				$24,574		$73
3				$24,360		$108
4				$24,145		$144
5				$23,929		$179
6				$23,713		$214
7				$23,495		$249
8				$23,276		$283
9				$23,057		$317
10				$22,836		$350
11				$22,615		$384
12				$22,393		$417
13				$22,170		$449
14				$21,945		$482
15				$21,720		$514
16				$21,494		$545
17				$21,268		$577
18				$21,040		$608
19				$20,811		$638
20				$20,581		$669
21				$20,350		$699
22				$20,119		$729
23				$19,886		$758
24				$19,652		$787
25				$19,418		$816
26				$19,182		$844
27				$18,945		$872
28				$18,708		$899
29				$18,469		$927
30				$18,230		$954
31				$17,989		$980
32				$17,748		$1,006
33				$17,505		$1,032
34				$17,262		$1,058
35				$17,017		$1,083
36				$16,771		$1,108
37				$16,525		$1,132
38				$16,277		$1,156
39				$16,029		$1,180
40				$15,779		$1,204
41				$15,528		$1,227
42				$15,276		$1,249
43				$15,023		$1,271
44				$14,770		$1,293
45				$14,515		$1,315
46				$14,259		$1,336
47				$14,001		$1,357
48				$13,743		$1,377
49				$13,484		$1,397
50				$13,224		$1,417
51				$12,962		$1,436
52				$12,700		$1,455
53				$12,436		$1,474
54				$12,172		$1,492
55				$11,906		$1,510
56				$11,639		$1,527
57				$11,371		$1,544
58				$11,102		$1,561
59				$10,832		$1,577
60				$10,560		$1,593
61				$10,288		$1,608
62				$10,014		$1,623
63				$9,739		$1,638
64				$9,463		$1,652
65				$9,186		$1,666
66				$8,908		$1,679
67				$8,629		$1,692
68				$8,348		$1,705
69				$8,066		$1,717
70				$7,784		$1,728
71				$7,499		$1,740
72				$7,214		$1,751
73				$6,928		$1,761
74				$6,640		$1,771
75				$6,351		$1,781
76				$6,061		$1,790
77				$5,770		$1,799
78				$5,478		$1,808
79				$5,184		$1,816
80				$4,889		$1,823
81				$4,593		$1,830
82				$4,296		$1,837
83				$3,997		$1,843
84				$3,697		$1,849
85				$3,396		$1,854
86				$3,094		$1,859
87				$2,790		$1,864
88				$2,485		$1,868
89				$2,179		$1,872
90				$1,872		$1,875
91				$1,563		$1,877
92				$1,253		$1,880
93				$942		$1,882
94				$629		$1,883
95				$315		$1,884
96				$0		$1,884
97				-$316		$1,884
98				-$634		$1,884
99				-$953		$1,883
100				-$1,274		$1,882
101				-$1,596		$1,880
102				-$1,919		$1,877
103				-$2,243		$1,875
104				-$2,569		$1,871
105				-$2,896		$1,868
106				-$3,225		$1,863
107				-$3,555		$1,859
108				-$3,886		$1,853
109				-$4,219		$1,848
110				-$4,553		$1,842
111				-$4,888		$1,835
112				-$5,225		$1,828
113				-$5,564		$1,820
114				-$5,903		$1,812
115				-$6,244		$1,804
116				-$6,587		$1,794
117				-$6,931		$1,785
118				-$7,276		$1,775
119				-$7,623		$1,764
120				-$7,971		$1,753
Depreciation and Section 179 Deductions
Original Basis of Vehicle					Veh type
Section 179 deduction					# of years
Adjusted basis before bonus depr					Depr yrs
Bonus depreciation
Adjusted basis for MACRS
For Vehicle Types 2, 3, 4, and 5									2012 Luxury Limits--2013 Rates Will Closely Approximate These
		179, bonus							New car	Used car or	New truck	Used truck		Total Dep
		& MACRS	Luxury	Lesser of	Year of	Total	Over the			No Bonus		No bonus		Sect 179	Present
Year	MACRS %	Deprec	Limit	MACRS/limit	Sale Adj	Deprec	Limit	Year	2	3	4	5		by Year	Value
1	20.00%							1	11060	3060	11260	3260
2	32.00%							2	4900	4900	5100	5100
3	19.20%							3	2950	2950	3150	3150
4	11.52%							4	1775	1775	1875	1875
5	11.52%							5	1775	1775	1875	1875
6	7.60%							6	1775	1775	1875	1875
				Deprec from table							Total present value of depreciation and 179
														Tax Rate
											Tax savings from depreciation and Sec. 179
For Vehicle Types 6, 7, 8, and 9											2, 3, 4, 5	6, 7, 8, 9
		179, bonus		Total Dep				Adjusted basis calculation			1	2
		& MACRS	Year of	Sect 179	Present			Original basis
Year	MACRS %	Deprec	Sale Adj	by Year	Value			Depreciation and 179 deduction
1	20.00%							Adjusted basis
2	32.00%
3	19.20%
4	11.52%
5	11.52%
6	7.60%
				Tax rate	35%
		Tax savings from depreciation and 179
								PV table for Vehicle depreciation and gain or loss on sale
Present value of cash from sale of vehicle								Veh Type	gain/loss	Dep/179
Estimated selling price								2	$6,408	$0
Present value								3	$6,408	$0
								4	$6,408	$0
Present value of tax benefit or detriment from taxable gain or loss on sale								5	$6,408	$0
		2, 3, 4, 5	6, 7, 8, 9					6	-$2,406	$10,323
		1	2					7	-$2,406	$10,323
Selling price								8	-$2,406	$10,323
Adjusted basis								9	-$2,406	$10,323
Gain or (Loss)
Tax rate
Tax benefit (detriment)
Present value
Present value of tax savings from lease payments
Present value of tax detriment from lease inclusion amounts
Vehicle type
Table number
	Table 1	Present Value
	Inclusion	Of Tax
Year	Amount	Detriment
1
2
3
4
5
6
7
8
9
10
REV. PROC. 2012-23 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 (We also used this table for trucks and vans as the difference in the table amounts are immaterial.)
Fair Market Value of Passenger Automobile		Tax Year During Lease
Over	Not Over	1	2	3	4	5	6	7	8	9	10
0	18,500	0	0	0	0	0	0	0	0	0	0
18,500	19,000	2	4	5	6	8	8	8	8	8	8
19,000	19,500	2	4	7	7	9	9	9	9	9	9
19,500	20,000	2	5	8	8	10	10	10	10	10	10
20,000	20,500	3	5	9	10	11	11	11	11	11	11
20,500	21,000	3	6	9	12	12	12	12	12	12	12
21,000	21,500	3	7	10	12	14	14	14	14	14	14
21,500	22,000	3	8	11	13	16	16	16	16	16	16
22,000	23,000	4	8	13	15	17	17	17	17	17	17
23,000	24,000	4	10	15	17	20	20	20	20	20	20
24,000	25,000	5	11	17	19	23	23	23	23	23	23
25,000	26,000	6	12	19	21	26	26	26	26	26	26
26,000	27,000	6	14	20	24	28	28	28	28	28	28
27,000	28,000	7	15	22	26	31	31	31	31	31	31
28,000	29,000	7	16	25	28	33	33	33	33	33	33
29,000	30,000	8	18	25	32	35	35	35	35	35	35
30,000	31,000	9	19	27	34	38	38	38	38	38	38
31,000	32,000	9	20	30	36	41	41	41	41	41	41
32,000	33,000	10	21	32	38	43	43	43	43	43	43
33,000	34,000	10	23	33	41	46	46	46	46	46	46
34,000	35,000	11	24	35	43	49	49	49	49	49	49
35,000	36,000	12	25	37	45	52	52	52	52	52	52
36,000	37,000	12	27	39	47	54	54	54	54	54	54
37,000	38,000	13	28	41	49	57	57	57	57	57	57
38,000	39,000	13	29	43	52	59	59	59	59	59	59
39,000	40,000	14	30	45	54	62	62	62	62	62	62
40,000	41,000	14	32	47	56	65	65	65	65	65	65
41,000	42,000	15	33	49	58	68	68	68	68	68	68
42,000	43,000	16	34	51	61	70	70	70	70	70	70
43,000	44,000	16	36	52	63	73	73	73	73	73	73
44,000	45,000	17	37	54	66	75	75	75	75	75	75
45,000	46,000	17	38	57	67	78	78	78	78	78	78
46,000	47,000	18	39	59	70	80	80	80	80	80	80
47,000	48,000	19	40	61	72	83	83	83	83	83	83
48,000	49,000	19	42	62	75	86	86	86	86	86	86
49,000	50,000	20	43	64	77	89	89	89	89	89	89
50,000	51,000	20	45	66	79	91	91	91	91	91	91
51,000	52,000	21	46	68	81	94	94	94	94	94	94
52,000	53,000	21	47	70	84	96	96	96	96	96	96
53,000	54,000	22	48	72	86	99	99	99	99	99	99
54,000	55,000	23	49	74	88	102	102	102	102	102	102
55,000	56,000	23	51	76	90	104	104	104	104	104	104
56,000	57,000	24	52	78	92	107	107	107	107	107	107
57,000	58,000	24	54	79	95	110	110	110	110	110	110
58,000	59,000	25	55	81	97	113	113	113	113	113	113
59,000	60,000	26	56	83	100	115	115	115	115	115	115
60,000	62,000	26	58	86	103	119	119	119	119	119	119
62,000	64,000	28	60	90	108	124	124	124	124	124	124
64,000	66,000	29	63	94	112	129	129	129	129	129	129
66,000	68,000	30	66	97	117	135	135	135	135	135	135
68,000	70,000	31	68	102	121	140	140	140	140	140	140
70,000	72,000	32	71	105	126	145	145	145	145	145	145
72,000	74,000	33	74	109	130	151	151	151	151	151	151
74,000	76,000	35	76	113	135	156	156	156	156	156	156
76,000	78,000	36	78	117	140	161	161	161	161	161	161
78,000	80,000	37	81	120	145	166	166	166	166	166	166
80,000	85,000	39	86	127	152	176	176	176	176	176	176
85,000	90,000	42	92	137	163	189	189	189	189	189	189
90,000	95,000	45	98	147	175	202	202	202	202	202	202
95,000	100,000	48	105	155	187	215	215	215	215	215	215
100,000	110,000	52	115	170	203	235	235	235	235	235	235
110,000	120,000	58	127	189	227	262	262	262	262	262	262
120,000	130,000	64	140	208	250	288	288	288	288	288	288
130,000	140,000	70	153	227	272	315	315	315	315	315	315
140,000	150,000	75	166	246	296	340	340	340	340	340	340
150,000	160,000	81	179	265	318	368	368	368	368	368	368
160,000	170,000	87	192	284	341	394	394	394	394	394	394
170,000	180,000	93	204	304	364	420	420	420	420	420	420
180,000	190,000	99	217	323	387	446	446	446	446	446	446
190,000	200,000	105	230	342	409	473	473	473	473	473	473
200,000	210,000	111	243	361	432	499	499	499	499	499	499
210,000	220,000	116	256	380	455	526	526	526	526	526	526
220,000	230,000	122	269	399	478	552	552	552	552	552	552
230,000	240,000	128	282	418	501	578	578	578	578	578	578
240,000	And up	134	294	437	524	605	605	605	605	605	605
XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX	XXXX