Lease vs Buy Car Calculator

Compare the true cost of leasing versus buying the same car, counting the value of the car you would own.

Net cost of leasing—

Net cost of buying (same period)—
Difference—
Loan payment per month—
Paid on the loan in that period—
Loan balance left—
Car value at that point—
Your equity in the car—

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Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

How we compare leasing vs buying a car

Comparing a lease payment with a loan payment is misleading, because when you buy you also end up owning a car. This lease versus buy calculator compares both options over the same period — the lease term — and subtracts the equity you would have in the car you bought.

Lease net cost = due at signing + lease payment × lease months Buy net cost = down payment + loan payments made − (car value − loan balance left)

When leasing usually makes sense

You drive a predictable number of miles, under the lease allowance.
You like having a new car under warranty every two or three years.
The lease has a strong residual or manufacturer incentives (a low money factor).

When buying usually makes sense

You keep cars for many years after the loan is paid off — that is where buying wins big.
You drive a lot of miles, or you want to modify the car.
You can get a low loan rate.

Limits of this comparison

We do not include insurance differences, maintenance, excess-mileage charges, or the investment return you could earn on a larger down payment. The car's future value is your estimate — try a pessimistic number too. To check the lease side in detail, use the car lease calculator.

Frequently asked questions

Is it cheaper to lease or buy a car?

Over a short period leasing can cost about the same or less. Over the long run buying is usually cheaper, because you keep driving the car after the loan is paid off.

How do you compare a lease vs a car loan?

Compare the total cost over the same number of months, and for the purchase subtract the equity you would have in the car (its value minus the loan balance).

What resale value should I use?

Many cars are worth around 50–60% of their price after three years, but it varies a lot by model. Check used listings for the same model, three years older.

Does this include sales tax?

Yes. Sales tax is added to the purchase price and financed. For the lease, enter a monthly payment that already includes tax.

Why does a bigger down payment not change the result much?

Money you put down is still part of the cost. It lowers interest slightly but the comparison counts every dollar you pay.