Lease vs Buy Car Calculator
Compare the total cost of leasing versus buying a car over the same period.
This is an estimate for general information only and is not financial, tax or investment advice. Figures may differ from a lender or advisor.
TThe Crypto Tools69+ free crypto calculators — profit, fees, DCA and more.Our networkVisit →This lease-vs-buy calculator compares the cost of leasing a car against buying one over the same period. Enter the lease terms — the monthly payment, the term in months and the down payment — then the purchase details, including the car price, down payment, loan APR, loan term and the estimated resale value at the end of the lease term.
The comparison is made over the lease term. The lease total is the lease down payment plus every monthly lease payment. The buy net cost is the buy down payment plus the loan payments made during that same window, minus the car's resale value — because when you buy, you keep the vehicle and its remaining worth. The cheaper option is whichever total is lower.
How to use it
- 1Enter the monthly lease payment, lease term in months and lease down payment.
- 2Enter the car price, buy down payment, loan APR and loan term in months.
- 3Enter the estimated resale value of the car at the end of the lease term.
- 4Read which option is cheaper, along with the lease total cost and the buy net cost.
Frequently asked questions
How does the lease-vs-buy comparison work?+
It compares total spending over the lease term. Leasing adds the down payment and every monthly lease payment. Buying adds the down payment and the loan payments made in that window, then subtracts the car's resale value because you still own the vehicle.
Why does buying subtract the resale value?+
When you buy, you keep the car and its remaining worth at the end of the period. Subtracting the resale value reflects the equity you hold, which leasing does not give you.
Does this include insurance, maintenance or taxes?+
No. It compares payments and resale value only. Insurance, maintenance, registration and sales tax can differ between leasing and buying and are not included here.
Related calculators
Calculate your monthly car payment including taxes, fees, trade-in and down payment.
Estimate your monthly car lease payment from price, residual value and money factor.
Estimate the fuel needed and total cost of a trip from distance, efficiency and price.
Calculate mileage reimbursement from miles driven and the rate per mile.