Ballast
Ballast/Capital desk/No. 04

Compare · Capital desk · 2 minutes

Cash, Finance or Lease

The showroom prices three doors as a monthly payment. Capital prices them as end-of-term wealth: what the cash would have earned, what the loan's coupon really costs against your market, and what the lease leaves you holding — which is nothing. This instrument settles it in one table.

Currency-agnostic · symbol only Rules version 1.0 Reviewed July 2026

The manifest — your numbers

Σ

The all-in cash price, taxes and fees included.

Σ

Sets the load gauge and your hourly value.

h / wk
months

One horizon for all three paths — the finance term.

% / yr
% of price
Σ/ mo

For the same asset over the same term, fees averaged in.

% of price

What the asset fetches — or the lease buyout it's measured against.

% / yr

The market your idle cash lives in. The whole comparison turns on this against the APR.

Nothing you type leaves this page. The instrument runs entirely in your browser; there is no account and no record.

The reading

Lease.

$62,213

true cost of the cheapest door, in month-48 wealth

Three doors, one horizon

CashFinanceLease
Cash out on day one
Monthly payment
Total paid over the term
Asset value at end of term
True cost, in end-of-term wealth

Three markets, same three doors

If idle cash returnsCheapest pathIts true cost

What moves this result

What would sink this reading

Leases carry teeth the table can't see: mileage bands, wear charges, disposition fees. Add your honest estimate to the lease column before deciding.

Financing assumes the freed cash is actually invested. If it would sit in a current account at nothing, the loan's coupon buys you nothing — pay cash.

Early exits break the model. Loans carry settlement terms; leases carry penalties; the comparison above holds only if you run the full term.

Questions people bring to this desk

Is leasing ever cheaper than paying cash?
It can be — when the lease payments, future-valued, come to less than the cash price's forgone growth minus the resale you'd have kept. In practice that needs strong residuals baked into the lease or a high return on your idle cash. This instrument shows the exact crossover for your numbers.
When does financing beat paying cash?
Broadly, when the return your cash earns invested exceeds the loan's APR — then the loan is cheap rent on money that's working harder elsewhere. At a 7.5% APR against a 6% market, cash usually wins; invert the spread and financing does.
What horizon should I compare over?
One horizon for all three paths, or the comparison is rigged. This instrument uses the finance term for everything and future-values every payment to that month, so a large payment early costs more than the same payment late — as it should.
Methodology — the formula, printed

Everything below is calculated from your inputs except the market return, an assumption you control. All three paths are future-valued to the same month at the market rate, so they are directly comparable.

i = r/12 (market, monthly) j = APR/12 m = term FV(lump) = lump·(1+i)^m FV(stream) = pmt·((1+i)^m − 1)/i loan pmt = L·j / (1 − (1+j)^−m), L = price·(1 − down) cash_cost = FV(price) − residual finance_cost = FV(down·price) + FV(pmt stream) − residual lease_cost = FV(lease stream)

The gauge reads the cheapest path's first-twelve-months cash outlay against one year's net income, with the safe-load line at the house 20%. The verdict names the cheapest door; margins under about 3% of price are called a line-ball.

Limitations. One residual value serves both the cash and finance columns; lease-end fees, insurance differences and tax treatment (deductible business leases can rearrange this entirely) are outside the model. Judgment tool, not an accounting document.