Lease

Lease vs Buy Calculator

Compare the true cost of leasing vs buying a car. See total costs and monthly payments side by side.

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Quick Take

This calculator gives you real-time estimates based on standard financial formulas. Modify any input and results update instantly — no calculate button needed.

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Financial Information Only — Not Advice

This tool uses standard, publicly documented formulas to estimate outcomes. It is for educational use and is not financial, tax, or legal advice. Interest rates, fees, and tax figures change over time and are set by lenders, dealers, and government agencies — not by this site. Always confirm current rates and terms with your lender, dealer, or state agency, and consult a qualified professional before making a decision.

Primary Result

$0

Buy - Total Cost

Lease - Total Cost
$0
Down + Lease payments + Fees
Buy - Monthly Payment
$0
Amortized loan
Lease - Monthly Payment
$0
Depreciation + Interest + Tax
Cost Difference
$0
Lease total - Buy total
Disclaimer: Results are educational estimates only and do not constitute professional financial advice. Actual loan terms, rates, and costs may vary.
What This Calculator Does

Compare the true cost of leasing vs buying a car. See total costs and monthly payments side by side.

How the Calculation Works
Buy - Total Cost:Down + Payments - Resale + Tax
Lease - Total Cost:Down + Lease payments + Fees
Buy - Monthly Payment:Amortized loan
Lease - Monthly Payment:Depreciation + Interest + Tax
Cost Difference:Lease total - Buy total
Who Should Use This Tool

This calculator is designed for anyone looking to understand the financial implications of lease decisions. Whether you're a first-time buyer, comparing options, or planning for the future, these estimates help you make informed choices.

Important Considerations

Remember that actual terms, rates, and costs will vary by lender, your credit score, and current market conditions. These calculators provide educational estimates only and do not constitute professional financial advice. Always compare multiple offers and consult a financial professional before making decisions.

How the math works

Buy cost uses amortization on the purchase price; lease cost sums payments plus the predicted end-of-lease value gap. Residual and money factor are lessor-set; depreciation data is published by used-car research firms.

How to use this calculator

  1. Enter the purchase price, real APR quote, and a down payment you can make.
  2. Enter the lease's real capitalized cost, residual, and money factor from the offer.
  3. Set how long you keep the car and your expected annual miles.
  4. Read which path costs less over your ownership horizon.

Sources & authoritative references

The definitions, formulas, and benchmarks behind this tool are drawn from the public, primary sources listed below. We do not cite figures we cannot verify.

Frequently Asked Questions

Is it cheaper to lease or buy?+
Short-term (2–3 years): leasing often cheaper. Long-term (5+ years): buying usually cheaper. Our calculator shows your exact scenario.
How does the comparison work?+
We compare total cost of ownership over the same period. Buying includes depreciation, interest, tax. Leasing includes all payments and fees.
What are hidden lease costs?+
Acquisition fees ($500–$900), disposition fees ($300–$500), excess mileage ($0.15–$0.30/mile), wear and tear fees.
Benefits of leasing?+
Lower payments, no/low down, easy upgrade every 2–3 years, warranty coverage, no trade-in hassle.
When is buying better?+
If you keep 5+ years, drive >15k miles/year, want to modify, or want to build equity.

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