Car Lease vs Buy Calculator
Compare the total cost of leasing against financing and buying a vehicle over the same term.
Lease details
Buy details
This calculator runs entirely in your browser. Nothing you type is uploaded or saved.
How to use this tool
This lease vs buy car calculator helps you compare auto financing and leasing costs side by side so you can decide whether to lease or buy a vehicle.
- Enter your monthly lease payment, the lease term, and the cash due at signing.
- For the buy option, enter the vehicle price, your down payment, the loan APR, and the loan term.
- Estimate what the car will be worth (resale or trade-in value) at the end of the comparison period.
- Set the comparison period in months. The tool measures both choices over this same window so the comparison is fair.
- Press Compare lease vs buy. You will see the total cost of each option and which one is cheaper.
How the comparison works
To compare apples to apples, both options are measured over the same number of months. Leasing has no leftover asset, so its cost is simply what you pay. Buying leaves you owning a car with resale value, so that value is subtracted as money you keep.
The option with the lower total cost is the cheaper choice over the period you chose. Buying often wins when you keep the car for many years, because the resale value offsets the price. Leasing can win over short periods when you want lower monthly payments and a newer car more often.
A real example
Suppose a lease is $389 per month for 36 months with $2,500 due at signing. The same car costs $32,000 to buy, with a $4,000 down payment, a 6.5% APR loan over 60 months, and an estimated resale value of $18,000 after 36 months.
Lease cost over 36 months: 389 x 36 + 2,500 = $16,504. The financed amount is 32,000 - 4,000 = $28,000. At 6.5% APR over 60 months the monthly payment is about $547.86. Over 36 months you pay 547.86 x 36 = $19,723, plus the $4,000 down, minus the $18,000 the car is worth: 4,000 + 19,723 - 18,000 = $5,723. In this case buying is far cheaper because you keep an asset worth $18,000, even though the monthly payments are higher.
Common questions
Should I lease or buy a vehicle?
Leasing usually means lower monthly payments and driving a newer car, but you own nothing at the end. Buying costs more per month but builds equity you can recover through resale. Use this calculator with realistic resale and APR numbers to see which is cheaper for your specific situation and how long you plan to keep the car.
What car ownership cost metrics does this include?
The tool compares the core cash costs: lease payments plus due at signing versus loan down payment, loan payments, and the resale value you keep. It does not include insurance, fuel, maintenance, lease mileage penalties, or taxes, which can differ between the two paths. Add those separately if they matter for your decision.
Why does the comparison period matter?
Leasing and buying play out differently over time. A lease cost is fixed by its term, while buying becomes cheaper the longer you keep the car because the price is spread out and resale value offsets it. Comparing both over the same number of months keeps the result honest.
What resale value should I enter?
Use a realistic estimate of what the car will sell for or trade in at the end of your comparison period. Online valuation guides and recent listings for the same model and mileage are good references. A higher resale value makes buying look more attractive.
Is this calculator accurate enough to decide on?
It gives a solid side by side estimate of cash costs, but it is for educational use, not professional financial advice. Real lease and loan offers include fees, taxes, and conditions that vary by state and dealer. Confirm exact figures with the lender or leasing company before signing.