Lease vs buy car calculator
Enter the price and loan terms for buying, the car's expected resale value after the period, and the lease payment, up-front amount and end fee. The calculator shows which route costs less over the same months and by how much.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Set the period in months; the loan and the lease run for this long.
- Enter the car’s price (with taxes), your down payment, the loan rate and what you expect to sell the car for afterwards.
- Enter the lease’s monthly payment, the amount due at signing and any fee at the end.
- Read which option is cheaper and by how much.
How it works
- Loan payment = (price − down) × r ÷ (1 − (1 + r)^−n), with r the rate ÷ 12 and n the months.
- Buying = down payment + payment × months − resale value.
- Leasing = due at signing + payment × months + end fee.
- The difference is the gap between the two totals.
Worked example
A 35,000 car, 3,500 down, 6% over 36 months: the loan of 31,500 costs 958.29 a month, so buying costs 3,500 + 958.29 × 36 − 21,000 resale = 16,998.48. A lease at 399 a month with 2,000 due and a 400 end fee costs 2,000 + 399 × 36 + 400 = 16,764. Leasing is cheaper by 234.48 here.
Tips
- Test the resale value. Lower it to see how much your answer depends on it.
- Compare the same period. A lease usually ends sooner than an ownership plan; buying looks better the longer you keep the car.
- Add what is missing. Put mileage charges into the end fee to keep the comparison honest.
Frequently asked questions
How does the calculator compare leasing and buying?
Buying costs the down payment plus every loan payment, minus the resale value of the car at the end. Leasing costs the amount due at signing plus the monthly payments plus any end fee. Both are over the same number of months.
Why is resale value subtracted when buying?
When the period ends you still own the car and can sell it. Subtracting that value shows what the car really cost you to use. Be realistic: the estimate is the largest source of uncertainty.
What is not included?
Insurance, maintenance, registration and fuel are left out because they are assumed to be similar. Mileage limits, excess wear charges and early-termination fees on a lease, and a lender's fees on a loan are not counted unless you add them to the fields.
How is the loan payment calculated?
The amount borrowed is price minus down payment, repaid with equal monthly payments using the annual rate divided by 12. For 31,500 at 6% over 36 months the payment is 958.29.