Car Lease vs Buy Calculator

Compare the total cost of leasing versus buying a vehicle over the same time period. This calculator factors in monthly payments, down payments, fees, depreciation, and residual value to help you make an informed financial decision.

Vehicle & Terms
$
months
Lease Details
$
$
$
$
Purchase Details
$
%
%
$
Total Lease Cost
$16,100
$447/mo effective
Net Buy Cost
$16,450
$457/mo effective
Better Option
Leasing
Saves $350 over 36 months
$928
Buy Monthly
$3,400
Loan Interest
$14,000
Depreciation

Detailed Breakdown

Lease Costs

Monthly Payments$12,600
Down Payment$2,500
Acquisition Fee$650
Disposition Fee$350
Total$16,100

Buy Costs

Loan Payments$33,400
Down Payment$5,000
Sales Tax$2,450
Less: Residual Value-$21,000
Net Cost$16,450

How to Use This Lease vs Buy Calculator

Enter the vehicle price and desired term length. Fill in lease details including monthly payment, down payment, and fees. For the purchase option, enter your down payment, loan APR, tax rate, and estimated vehicle value at the end of the term. The calculator compares total costs to determine which option is more economical.

Understanding the Comparison

This calculator compares the true cost of each option over the same time period. For leasing, the total cost includes all payments and fees. For buying, the net cost subtracts the vehicle's residual value (what you could sell it for) from total expenditures, representing your actual out-of-pocket cost of ownership.

When Leasing Makes Sense

You prefer a new car every 2-3 years

You drive less than 12,000-15,000 miles/year

You want lower monthly payments

You don't want to deal with selling a used car

When Buying Makes Sense

You plan to keep the car 5+ years

You drive high mileage

You want to build equity/ownership

You want to customize the vehicle