Lease vs. Buy Calculator — Compare Car Lease and Purchase Costs

Monthly Lease Payment ($)Enter a valid amount.

Lease Term (months)

Lease Down Payment ($)

Monthly Loan Payment ($)Enter a valid amount.

Purchase Down Payment ($)

Estimated Resale Value at End ($)

Lower Total Cost

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Total Lease Cost

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Net Buy Cost

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How to Use This Tool

Enter your lease payment, term, and down payment details.
Enter your loan payment, down payment, and estimated resale value for the purchase option.
Click Compare to see the lower total cost over the same period.

The Comparison Formula

Total Lease Cost = Lease Down Payment + (Monthly Payment × Term)

Net Buy Cost = Purchase Down Payment + (Monthly Payment × Term) − Estimated Resale Value

Beyond the Numbers: Key Differences

Ownership: Buying builds equity you keep; leasing means returning the car with nothing to show for it (unless you buy it out)
Mileage limits: Leases typically cap annual mileage (commonly 10,000-15,000 miles), with costly overage fees
Customization and wear: Leased cars must be returned in good condition; owned cars can be modified and driven without excess-wear penalties
Flexibility: Leasing offers an easy exit every few years for a new car; buying means dealing with resale or trade-in yourself

Who Leasing Tends to Suit

Those who want a new car every few years, drive predictable low-to-moderate mileage, and prefer lower monthly payments without long-term commitment.

Who Buying Tends to Suit

Those who drive high mileage, want to build equity, plan to keep the car long-term (past when a loan is paid off, driving cost-free), or want full customization freedom.

Frequently Asked Questions

Does this account for mileage overage fees on a lease?

No, this compares base costs only — if you expect to exceed your lease's mileage allowance, factor in potential overage fees (commonly $0.15-$0.30 per mile) separately, as they can meaningfully affect the total lease cost.

Is buying always cheaper in the long run?

Often, especially if you keep the car well beyond the loan term (driving payment-free for years), but this depends heavily on the specific resale value, loan interest rate, and how long you keep the vehicle — the calculator above lets you compare your specific numbers.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.