Lease vs Buy Calculator
Compare leasing vs buying a car costs.
- Analyze financial benefits, monthly payments, and long-term savings to make informed decisions.
Figures are estimates from this calculator’s standard formula — adjust the inputs in the tool below for your exact number.
How Lease vs Buy Comparison Works
This calculator compares the total cost of leasing versus buying over a specified period. It factors in payments, interest, down payments, residual value, and end-of-term equity to help you make the right financial decision for your situation.
- 1
Enter Vehicle Details
Input vehicle price, down payment, and loan/lease terms
- 2
Set Financing Terms
Enter interest rates for both buying and leasing scenarios
- 3
Enter Projected Resale
Estimate what the car will be worth when you would sell
- 4
Compare Results
View total cost comparison and break-even analysis
Use Cases
Financial Decision
Determine which option costs less for your specific situation
Long-term Planning
Compare costs over multiple vehicle cycles (lease every 3 years vs buy and keep)
Cash Flow Analysis
Compare monthly costs and upfront requirements
Equity Building
Understand how buying builds equity while leasing does not
Tips
- 1
Buying usually costs less long-term if you keep cars 6+ years
- 2
Leasing can be cheaper if you always want a new car every 3 years
- 3
Consider opportunity cost of down payment money when comparing
- 4
Leasing makes sense for business use with tax deductions
- 5
Factor in maintenance - leased cars are usually under warranty
Common Mistakes
Comparing only monthly payments instead of total cost
Not accounting for equity built when buying
Ignoring lease-end fees (excess mileage, wear, disposition fee)
Assuming you will keep a purchased car as long as planned
FAQs
Is it better to lease or buy?
When does buying make more sense?
When does leasing make more sense?
What about the equity I build when buying?
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