Car finance

Lease vs Buy Car Calculator

Enter the lease offer and the purchase and loan details for the same car. The calculator compares what each option really costs over the lease term, counting the equity you would hold in the car if you bought it.

Lease

Monthly payment

Lease term (months)

Due at signing

Other lease fees (e.g. disposition)

Expected excess-mileage charge

Buy

Purchase price

Sales tax (%)

Down payment

Upfront fees (registration etc.)

Loan APR (%)

Loan term (months)

Resale value at end of lease term

—Lease total cost

—Buy net cost

—Cheaper option

—Lease effective / month

—Buy effective / month

—Loan payment / month

Calculated on your device. Nothing is uploaded to a server.

How the comparison works

Leasing and buying are compared over the same period, the lease term. For the lease, the cost is everything you pay: the amount due at signing, fees, every monthly payment and any expected excess-mileage charge. You hand the car back at the end. For buying, the calculator works out the loan payment on the price plus sales tax minus your down payment. It then adds the down payment, upfront fees and the payments made during the lease term. At the end of that period you own a car worth its resale value, minus any loan balance still owed. That equity is subtracted to give the net cost. If you plan to keep a car for many years after it's paid off, buying usually wins by even more. If you like a new car every few years, leasing can be competitive.

What's not included

Insurance (often higher on leases), maintenance, repairs after the warranty, and the investment return on your down payment all shift the balance slightly.

Resale estimates

Many cars lose 40 to 50% of their value in 3 years. Check used prices for 3-year-old versions of the same model to set a realistic figure.

Lease vs Buy Car Calculator FAQ

Is it cheaper to lease or buy a car?

Over the long run, buying and keeping a car is usually cheaper. Over a short 2 to 3 year period, leasing can cost about the same or less, especially with strong lease deals.

What does due at signing include?

Usually the first payment, a down payment or capitalized cost reduction, and fees such as acquisition and registration. Enter the total.

How is equity calculated?

Equity is the car's estimated resale value at the end of the lease term minus the loan balance still owed at that point.

Should sales tax be included for the lease?

In many places, lease tax is built into the monthly payment. Use the payment quoted to you, including tax.

What if the loan term is shorter than the lease?

Then the loan is fully paid within the period, the balance is zero and your equity is the full resale value.