Car Lease vs Buy Calculator
Net cost of leasing a car against buying it with a loan, resale value included.
About this tool
Enter the lease terms: the amount due at signing, the monthly payment, the term and end-of-lease charges. Then enter the purchase: the car's price, your down payment, the loan rate and term, and how much value the car loses each year. The calculator compares what each option really costs over the lease term and shows the payments, the car's value at the end, the loan still owed and your equity.
How to compare leasing and buying fairly
Comparing monthly payments alone favours leasing. A fair comparison counts everything you pay over the same period and subtracts what you own at the end. A lease with 3,000 due at signing, 36 payments of 399 and 400 in end-of-lease fees costs 17,764, and you hand the car back. Buying the same 35,000 car with 5,000 down and a 60-month loan at 6.5% means payments of about 587. After 36 months you have paid about 26,131, but the car is still worth about 21,494 if it loses 15% a year, and you owe about 13,177. Your 8,317 of equity brings the net cost to about 17,814, almost the same as leasing. Buying pulls ahead the longer you keep the car after the loan is paid off, while leasing suits drivers who want a new car every few years. Honest limits: insurance, maintenance, mileage caps, taxes and dealer incentives differ between the two and are not modelled. General information, not financial advice. The loan calculator details the finance, the loan comparison calculator weighs offers and the fuel cost calculator adds running costs. How loan interest actually works explains the interest.
Frequently asked questions
Is it cheaper to lease or buy a car?
Over a short period the two are often close. Buying usually wins if you keep the car for years after the loan ends, because you stop making payments and still own the car.
How is the buy cost worked out?
Down payment plus the loan payments made during the lease term, minus your equity. Equity is the car's estimated value minus the loan still owed.
What depreciation should I use?
New cars often lose 15โ20% a year for the first few years. Check used prices for the same model at three years old for a better figure.
Is my data saved?
No. The calculation runs in your browser and nothing is stored or sent.