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.
Lease vs. Buy Financial Comparison
Total Cost Difference (Buy vs Lease)
- Total Cost to Purchase & Own $0.00
- Total Cost of Lease Payments $0.00
- Monthly Purchase Payment $0.00
- Monthly Lease Payment $0.00
What This Means
About Lease vs. Buy Car Calculator
The Lease vs. Buy Car Calculator compares the net cost of leasing a car against buying it with a loan. Leasing is measured as your down payment plus every monthly lease payment. Buying is measured as your down payment plus every loan payment, less an estimated resale value of 45% of the purchase price that you keep as equity at the end.
Formula & Mathematical Calculation
Net Cost of Leasing = Down Payment + (Monthly Lease Payment × Lease Term)
Net Cost of Buying = Down Payment + (Monthly Loan Payment × Loan Term) − Estimated Resale Value
The estimated resale value is taken as 45% of the purchase price, and the monthly loan payment is amortized from the price after the down payment, the interest rate, and the loan term.
Calculation Example
$35,000 car, $3,000 down, 5% over 60 months vs. a $400/month lease with $2,000 down over 36 months: buying costs about $603.88/month — $39,232.77 paid, minus an estimated $15,750 resale value = $23,482.77 net cost. Leasing totals $16,400, the lower net outlay on these terms.
Key Benefits
- Compares the net cost of leasing against buying with a loan
- Accounts for loan amortization and an estimated 45% resale value kept when buying
- Weighs lower lease payments against the equity you keep by owning
- 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
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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Next step: browse the full Auto Loans calculators or read the related guides for context before you decide.