Lease vs Buy Car Calculator
Compare total cash cost of leasing a car versus financing a purchase over the same lease term.
In short
You enter buy-side numbers (price, down payment, rate, loan months) and lease-side numbers (payment, term, residual) plus tax and fees. We total cash paid through the end of the lease term for each path and show total cost and average monthly cost so you can see which is cheaper in that window—not long-term ownership after the loan is paid.
Enter your vehicle price, loan terms, and lease payment. We total up cash outflows through the end of the lease period and show average monthly cost. The “buy” path includes down payment, estimated tax, loan payments through the same number of months, and fees. Lease includes all monthly payments plus fees.
Calculator
Results
Total lease cost (comparison period)
$15,920
Total buy / finance cost (same period)
$28,836
Average monthly (lease)
$442
Average monthly (buy)
$801
Extra cash if you buy vs lease
$12,916
Net buy cost if you sell at residual
$20,452
What lease vs buy means
Leasing usually means lower monthly payments and turning the car in at the end of the term. Buying builds equity, but you pay more upfront or per month and own depreciation risk. This tool compares cash out the door over the lease length—not long-term ownership after the loan is paid off.
When leasing can make sense
Leasing can work if you want a new car every few years, drive within mileage limits, and prefer predictable, lower payments. It may also fit if you use the car for business and can deduct payments (talk to a tax professional).
When buying can make sense
Buying tends to win if you keep vehicles a long time, drive a lot of miles, or want to avoid end-of-lease fees. Once the loan is paid, monthly costs drop—this calculator focuses on the early years when you still owe on the loan.
FAQ
- What comparison period do you use?
- We use your lease term in months. Loan payments are counted only through those same months (or until the loan is paid off if shorter). That way lease and buy are compared on the same timeline.
- What is “net buy cost if you sell at residual”?
- It starts with your total buy-side cash outflows, then assumes you sell the car for the residual you entered and pay off the remaining loan balance. It is a rough “what if”—not a guarantee of market value or payoff.
- Why might my real numbers differ?
- Dealers capitalize rebates and fees differently, taxes vary by state, and lease quotes include money factor instead of APR. Use this as a directional comparison, then verify with your dealer or lender paperwork.