Lease vs Buy Car Calculator

Compare the total cost of leasing versus buying a car over the same period. This tool processes all data locally in your browser. No information is ever sent to any server. Completely free, no registration required.

How to Use the Lease vs Buy Car Calculator

1. Enter your input values above
2. Results update automatically
3. Copy or download the output

What is a Lease vs Buy Car Calculator?

A Lease vs Buy Car Calculator compares the total cost of leasing versus buying a vehicle over your intended ownership period. Leasing offers lower monthly payments (you're only paying for the depreciation during the lease term plus a financing charge), but you own nothing at the end. Buying has higher payments but you own an asset. In 2026, with average new car prices around $48,000 and lease penetration about 20-25%, this decision impacts thousands of dollars.

How Does It Work?

Enter: car price, down payment, lease terms (monthly payment, term, mileage allowance, residual value, acquisition fee), and loan terms (interest rate, loan term). The calculator computes total cost for each scenario: Lease Total = Down + Σ(Monthly Payments) + Fees; Buy Total = Down + Σ(Loan Payments) + Maintenance − Resale Value. The breakeven analysis shows which is cheaper and by how much.

Formula

Lease Total = Down Payment + (Monthly × Term) + Acquisition Fee + Disposition Fee + Excess Mileage\nBuy Total = Down Payment + (Monthly Loan × Term) + Maintenance + Insurance Difference − Resale Value\n\nWhere: Resale Value = Original Price × Depreciation Factor (typically 40-55% after 3 years)\n\nLease Cost per Month (effective) = Lease Total ÷ Term\nBuy Cost per Month (effective) = (Buy Total − Resale) ÷ Term (if sold) or Buy Total ÷ Years Kept

Who Uses This Tool?

• Car shoppers deciding between leasing and buying a new vehicle
• Financial comparisons of 3-year total cost for different scenarios
• Evaluating whether to buy out a lease at end of term (compare buyout to market value)
• Tax analysis: lease deductions for business use vs. depreciation for owned vehicles

Pro Tips

• Leasing makes the most financial sense if you (1) want a new car every 3 years, (2) drive under the mileage limit, and (3) treat the car well (excess wear fees)
• Buying is better if you (1) plan to keep the car 5+ years, (2) drive high mileage, or (3) want the freedom to modify/sell at any time
• The money factor (lease interest rate) can be converted to an equivalent APR: Money Factor × 2400. A money factor of 0.0025 = 6% APR
• Always negotiate the purchase price BEFORE mentioning lease vs. buy. The car's selling price determines both the lease payment and loan amount

Frequently Asked Questions about Lease vs Buy Car Calculator

Is leasing ever cheaper than buying?

Over 3 years: often yes, because you're only financing ~55% of the car's value (the depreciation). Over 6+ years: almost always no, because you keep buying/leasing every 3 years while the buyer has no payments after the loan is paid.

What happens at the end of a lease?

Three options: (1) return the car (pay disposition fee + any excess wear/mileage), (2) buy the car at the predetermined residual value, (3) trade/sell the car (if market value > residual, you keep the equity).

Free online Lease vs Buy Car Calculator — no signup, 100% client-side processing. All data stays in your browser.