Lease vs buy calculator
Compare the cost of leasing with buying on a loan over the same term, including the car's value at the end.
- ๐บ๐ธ US federal & state rules
Cheaper over 36 months
Lease
By $4,771, or $132.53 a month
- Lease, total cost
- $20,675
- Buy, net cost
- $25,446
- Loan payment
- $725.91 a month
- Car equity at the end
- $4,687
This is an example. Enter your numbers above and press the button to see your own result.
If the car is worth a different amount at the end
| 40% of price | Buy net $31,146 vs lease $20,675 |
|---|---|
| 50% of price | Buy net $27,346 vs lease $20,675 |
| 60% of price | Buy net $23,546 vs lease $20,675 |
| 70% of price | Buy net $19,746 vs lease $20,675 |
- Both sides use the lease term as the comparison window. If you keep a bought car longer, its cost per year usually keeps falling.
- Insurance, maintenance, extra-mile charges and what your down payment could earn elsewhere are left out.
- Sales tax is applied to the full price on the purchase. Lease tax should already be in the lease payment you enter.
Show the math
| Lease: due at signing | $3,000.00 |
|---|---|
| Lease: $480.00 ร 36 months | $17,280.00 |
| Lease: disposition fee at return | $395.00 |
| Lease total | $20,675.00 |
| Buy: amount financed (price + tax minus down) | $36,660.00 |
| Buy: down + $725.91 ร 36 payments | $30,132.83 |
| Buy: car worth 55% of price after 3 years | $20,900.00 |
| Buy: loan balance left | $16,213.32 |
| Buy net cost (paid minus equity) | $25,446.15 |
What to do next
How it works
The lease side is what you pay at signing, plus every monthly payment, plus the fee to return the car. The buy side is your down payment plus the loan payments made during the same months.
At the end of that window the bought car is still worth something. The calculator subtracts the car's value minus any loan balance left, so the buy number is a net cost you can compare directly with the lease.
Things to keep in mind
The result swings on the resale value. The table shows how the answer changes if the car holds more or less of its price.
Lease contracts charge for miles over the limit and for excess wear. If you drive a lot, add those charges to the lease side before deciding.
Frequently asked questions
Is it cheaper to lease or buy a car?
Over the first three years a lease can cost about the same as buying, but buying usually wins if you keep the car for six years or more because the payments stop and the car still has value.
How do you compare a lease with a loan fairly?
Use the same time window. Add up everything you pay on each side, then subtract what the bought car is worth at the end minus what you still owe on the loan.
When does leasing make sense?
Leasing tends to fit people who want a new car every few years, drive within the mileage limit and would rather have a lower payment than build equity.