Lease vs. Buy Car Calculator
Compare the total financial cost of leasing versus buying a vehicle over 3 to 6 years, factoring in depreciation, residual value, and payments.
What this calculator does
The Lease vs. Buy Car Calculator estimates your result instantly from the values you enter, using standard auto loans formulas. Compare the total financial cost of leasing versus buying a vehicle over 3 to 6 years, factoring in depreciation, residual value, and payments. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About Lease vs. Buy Car Calculator
The Lease vs. Buy Car Calculator compares the net financial cost of leasing a car (monthly payments + down payment + acquisition fees) against buying with a loan (loan payments - remaining vehicle equity at the end of the term).
Formula & Mathematical Calculation
Net Cost of Leasing = Down Payment + ( Monthly Lease Payment × Lease Months ) + Acquisition/Disposition Fees
Net Cost of Buying = Down Payment + Cumulative Loan Payments + Maintenance - Estimated Resale Value
Calculation Example
$35,000 Car over 3 Years: Leasing ($450/mo + $2k down) = $18,200 total cost (Zero equity). Buying ($650/mo + $3k down) = $26,400 total paid - $20,000 resale equity = $6,400 Net Cost (Buying saves $11,800!).
Key Benefits
- Compares monthly cash flow vs. long-term equity accumulation
- Accounts for vehicle depreciation and lease residual value
- Includes lease acquisition fees, disposition fees, and mileage limits
- Highlights ownership benefits beyond the financing period
- 100% free car shopping tool
How to Use this Calculator
-
Enter Vehicle Purchase Price
Input MSRP or agreed vehicle price. -
Enter Lease Terms
Input monthly lease payment, down payment, and lease duration (e.g. 36 mos). -
Enter Loan Terms
Input loan interest rate and term (e.g. 60 mos). -
Compare Total Net Costs
Click Calculate to view full financial comparison.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Lease vs. Buy Car Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
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Next step: browse the full Auto Loans calculators or read the related guides for context before you decide.