Lease vs Buy Car Calculator
Compare the real cost of leasing against financing the same car over the same period — including the equity you keep when you buy.
Leasing
Buying (financing)
Leasing almost always wins on the monthly payment — but the sticker comparison is misleading, because at the end of a lease you hand the car back and own nothing, while a financed car leaves you with an asset. A fair comparison looks at the total cost of each option over the same period, then credits buying with the equity you keep. That's exactly what this calculator does.
How to compare leasing vs buying
The tool measures both options over the length of the lease. For leasing, it simply adds up everything you pay. For buying, it adds the cash you put in over the same months, then subtracts the equity you'd hold at the end — the car's resale value minus whatever you still owe on the loan.
Buy net cost = Down payment + (Loan payment × Lease term) − Equity
Equity = Car value at end − Remaining loan balance
| Input | What it means |
|---|---|
| Due at signing | Lease down payment, fees and first month rolled together |
| Resale value | What the car is worth when the lease would end |
| Remaining balance | Loan still owed at that point (from standard amortization) |
| Equity | The value you keep by owning — subtracted from the buy cost |
Worked example
Leasing at $400/month with $2,000 due at signing for 36 months, versus buying a $32,000 car with $3,000 down at 6% APR over 60 months, with the car worth $19,000 after three years:
| Lease total = 2,000 + (400 × 36) | $16,400 |
| Loan payment (≈) | $561/mo |
| Buy cash out = 3,000 + (561 × 36) | $23,183 |
| Equity = 19,000 − 12,650 owed | $6,350 |
| Buy net = 23,183 − 6,350 | $16,833 |
Here leasing is about $433 cheaper over the term — but the buyer walks away owning a $19,000 car (with a $12,650 loan left), while the leaser owns nothing and starts again.
When leasing tends to win
Leasing usually makes sense if you like a new car every few years, drive within the mileage limit, want the lowest monthly payment, and can use the car for business tax deductions. Because you only pay for the depreciation during the lease, the monthly cost is lower than a loan on the same car.
When buying tends to win
Buying tends to come out ahead if you keep cars a long time, drive high mileage, or value having no payment once the loan is paid off. Every payment after payoff builds toward a car you own outright, and there are no mileage penalties or wear-and-tear charges. Over a full ownership life — often 8 to 12 years — buying is usually the cheaper path.
Costs this calculator doesn't include
To keep the comparison clean, it leaves out items that apply to both options or vary widely: insurance, registration, maintenance, lease mileage overage fees, and sales tax treatment (which differs by state and by lease vs purchase). Factor these in separately — mileage penalties in particular can swing a lease decision.