Lease vs. Buy Car Calculator
Decide whether to lease or buy by comparing what each really costs over the same stretch of time. Enter the car’s price, then the lease terms and the loan terms, and the calculator totals your payments for each.
The key difference is what you have at the end: a lease leaves you with nothing to sell, while buying leaves you with a car worth something, minus whatever you still owe. The calculator counts that equity so the comparison is fair.
Calculator
Lease for 36 months
$21,696
- Monthly payment
- $547
- Payments + due at signing
- $21,696
- You own at the end
- Nothing
Buy and own for 36 months
$21,779
- Monthly payment
- $636
- Paid so far (incl. down)
- $27,882
- Car value − loan left
- $20,300 − $14,197
Over 36 months, leasing costs about $82 less. Buying’s net cost counts the equity you’d have if you sold the car at the end ($6,103); keep the car longer and buying usually pulls further ahead, since payments stop.
Leasing excludes mileage overage, wear charges, and disposition fees; buying excludes maintenance once the warranty ends. Both exclude insurance, which is often higher on a lease. Lease tax is applied to the monthly payment; purchase tax to the full price.
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Calculation Formulas
Lease payment from the standard depreciation + finance charge formula, with sales tax on the payment.
Sales tax on the full price is financed with the loan.
The payoff amount after k payments.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Comparison period | Lease term | Both options measured over the same months. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: October 2026
- Like-for-like comparison
Both options are measured over the same period, and buying is credited with the equity you could recover by selling the car.
- Excluded costs
Insurance, maintenance, mileage and wear charges, and opportunity cost of the down payment.
How to Use This Calculator
- Enter the car price, sales tax, and the period to compare (usually the lease term).
- Enter the lease’s amount due at signing, residual, APR, and fees.
- Enter the loan’s down payment, APR, term, and the car’s expected value at the end.
- Compare the net cost of each option.
Frequently Asked Questions
Is it cheaper to lease or buy a car?
Over a short period they’re often close, but buying usually wins the longer you keep the car, because payments end while the car keeps its value. In the default example, a $35,000 car costs about $21,700 to lease for 36 months and about $21,800 net to buy and own for 36 months — but keep the purchased car past the loan and its cost per year keeps falling.
When does leasing make sense?
When you want a new car every few years, drive fewer miles than the lease allows (often 10,000–12,000 a year), want lower monthly payments, or can deduct lease payments as a business expense.
Why does the calculator subtract the car’s value when buying?
Because you own it. At the end of the comparison period you could sell it, so its value minus any loan balance is money you get back. Leaving it out would overstate the cost of buying.
What lease costs aren’t included?
Excess mileage charges (often 15 to 25 cents a mile), excess wear charges, and a disposition fee at turn-in. If you drive a lot, these can tip the math toward buying.
Guides to go with this calculator
How a Car Lease Works: Money Factor & Residual
When you lease, you pay for the part of the car you use up, plus interest. Once you know the four numbers behind a lease payment, it’s much easier to spot a good deal — and negotiate one.
No Tax on Car Loan Interest: Rules and Savings
Interest on a new car loan is deductible again — up to $10,000 a year through 2028. But the car has to be new and U.S.-assembled, and the income phase-out bites fast. Here’s what it’s really worth.
How Much Car Can You Afford?
Dealers sell you a monthly payment; your budget cares about the total cost. Here’s a simple rule for setting a car budget — and the costs people forget to count.
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