Lease vs Buy (Car) Calculator
Compare leasing a car against financing the same vehicle.
Input sheet
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Leasing usually means a lower monthly payment, while buying builds equity you keep when the term ends. This calculator settles which one costs less over the same period by comparing total cash out against the resale value you walk away with.
How it works
Lease cost is payments over the term; buy cost is loan payments minus the resale value you keep. Lower net cost wins.
The buy side isn't just the sum of your loan payments — at the end of the term you still own a car worth something. Subtracting that resale value from your total payments gives the true net cost of buying. Leasing has no such offset: when the lease is up, you hand the keys back with nothing to show.
This comparison assumes the same vehicle and term on both sides and ignores money tied up in a down payment, sales-tax differences, and mileage penalties on a lease. It's the clearest apples-to-apples view of the big number; layer the fine print on top for a final call.
Lease total = lease payment × months. Buy net cost = (loan payment × months) − resale value. The option with the lower net cost wins.
Worked examples
A $35,000 car: lease at $400/mo or finance at $650/mo over 36 months, with a $20,000 resale value if you buy. → Buying wins by about $11,000.
Lease total: $400 × 36 = $14,400. Buy net: $650 × 36 − $20,000 = $23,400 − $20,000 = $3,400. Even with higher payments, the $20,000 of equity you keep makes buying far cheaper here.
A fast-depreciating luxury car: lease $450/mo, loan $700/mo over 36 months, with only a $9,000 resale value. → A dead heat — both options total $16,200.
Lease total: $450 × 36 = $16,200. Buy net: $700 × 36 − $9,000 = $25,200 − $9,000 = $16,200 — actually a dead heat. Push resale a bit lower and leasing comes out ahead, which is why steep depreciation favors leasing.
Tips & gotchas
- The single biggest lever is resale value — cars that hold value strongly favor buying, while fast depreciators narrow the gap toward leasing.
- A lease payment that looks cheap often hides a down payment, acquisition fee, and a mileage cap; add those in before trusting the monthly number.
- If you drive more than the typical 10,000–12,000 miles a year, lease overage fees (often 15–25¢ a mile) can erase the lease's apparent savings.
- Buying makes the most sense if you keep cars well past the loan payoff — once it's paid off you own a free asset, which this term-limited comparison doesn't even capture.
FAQ
How do I estimate the resale value to enter?
Look up the same make, model, and trim at the age and mileage it will have at term end on a used-car valuation site. When unsure, use a conservative (lower) figure so you don't overstate buying's advantage.
Does this account for maintenance and warranty?
No. Leases typically stay inside the factory warranty the whole term, while a bought car may face repairs later. If that matters to you, add an annual maintenance estimate to the buy side before deciding.
What if I plan to keep the car for ten years?
Then buying wins by a wide margin — after the loan is paid off you have years of payment-free driving that a lease never gives you. This tool only compares the loan/lease term itself, so it understates buying's long-run edge.
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