Lease vs Buy Calculator
Estimate the total out-of-pocket cost of leasing a car versus financing and owning it over a comparable term. Fast, free, and fully client-side.
Calculator Inputs
How the Lease vs Buy Calculator Works
Compares the estimated total out-of-pocket cost of leasing a vehicle against financing and owning it over a comparable term, using the standard loan amortization formula for the buy scenario. This is an ESTIMATE of financing cost only — it excludes insurance, maintenance, and taxes, which vary too much by location and driver to generalize into a single formula.
Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = Vehicle Price − Down Payment, r = APR / 100 / 12, n = Loan Term (months)
M is the standard amortized monthly loan payment. Buy Net Cost = Down Payment + (M × Loan Term) − Estimated Resale Value. Lease Net Cost = Lease Down Payment + (Lease Monthly Payment × Lease Term).
Calculation Example
A $30,000 vehicle with $3,000 down, financed at 6.5% APR over 60 months, resold for $15,000: buy net cost ≈ $19,700. Leasing at $350/month for 36 months with $2,000 down: lease net cost = $14,600.
Frequently Asked Questions
Is this an exact prediction of what I’ll pay?
No — treat it as an estimate of financing cost only. It does not include insurance, maintenance, registration, or sales tax, all of which vary by state and driver and can meaningfully shift the real comparison.
Why do buying and leasing use different terms in this comparison?
Loan terms and lease terms are commonly different lengths in real offers (e.g. a 60-month loan vs a 36-month lease), so this tool compares each scenario’s actual net cost over its own term rather than forcing an artificial equal-length comparison.
What does "estimated resale value" mean for the buy scenario?
It’s what you expect the vehicle to be worth (trade-in or private sale) at the end of the loan term, subtracted from your total payments since you’d still own that value — unlike a leased car, which you return.
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