Car Lease vs Buy Calculator
Compare total cost of leasing versus buying a car including monthly payments, down payment, residual value, and depreciation over your ownership period.
Lease vs Buy is one of the most common financial decisions when getting a new vehicle. Each option has different costs, benefits, and trade-offs.
Leasing costs:
Total Lease Cost = (Monthly Payment x Months) + Down Payment + Fees
You return the car at the end. You never own it, so there is no resale value to recover.
Buying costs (with a loan):
Total Buy Cost = (Monthly Payment x Months) + Down Payment + Interest - Resale Value
After paying off the loan, you own the car outright. The resale value offsets your total cost.
Key differences:
| Factor | Lease | Buy |
|---|---|---|
| Monthly payment | Lower | Higher |
| Ownership | No | Yes |
| Mileage limits | Yes (typically 10k-15k/year) | No |
| Customization | Limited | Full freedom |
| Long-term cost | Higher if repeating | Lower over 5+ years |
| Maintenance | Often under warranty | Your responsibility after warranty |
When leasing makes sense: You prefer new cars every 2-3 years, drive low miles, and want lower monthly payments.
When buying makes sense: You plan to keep the car 5+ years, drive high miles, or want to avoid ongoing payments.
The break-even point is typically around 3-4 years. Beyond that, buying almost always costs less.