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Lease vs Buy Car Calculator

Compare the true cost of leasing a car against buying it, counting what the car is still worth at the end.

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Compare up to three snapshots of inputs and headline results. Snapshots clear when you leave this page.

Start from
The car and the period

Use the lease length, or longer if you would lease again.

Leasing

Down payment, first month, acquisition fee and taxes. Add each signing if leasing more than once.

Disposition fee, plus any expected excess-mileage or wear charges.

Buying

Sets what the car is worth at the end. Check used prices for the same model a few years old.

Buying is cheaper by

$625

Over 3 years, comparing everything paid out minus what you own at the end.

Leasing

Total paid$19,559
Car owned at the end$0
Net cost$19,559

Buying

Loan payment ($651.88/mo)$23,468
Down payment$3,000
Car worth at the end− $22,108
Loan still owed$14,575
Net cost$18,934
The longer you keep a car, the more buying tends to win. Most of a car’s value is lost in its first few years, which is exactly the period a lease covers. Once a bought car is paid off, each extra year costs only upkeep. Try the “Keep it 6 years” preset to see the effect.
Read the lease terms. Mileage limits, wear-and-tear standards and early-termination charges can add thousands. Insurance requirements are often stricter on leased cars. Maintenance, sales tax treatment and insurance costs are not modelled here.

How this is calculated

Leasing cost is the amount due at signing, plus every monthly payment, plus end-of-lease fees.

Buying is measured on net cost: the down payment plus the loan payments made during the period, minus what you own at the end. What you own is the car’s depreciated value, minus any loan balance still owed. The car’s value falls by the annual depreciation rate, compounded monthly.

Not included: sales tax differences, insurance, maintenance and repairs, registration, and the return you could earn on a down payment. Further reading: CFPB: Auto loans.

Common questions

›Is it cheaper to lease or buy a car?

Over a short period, leasing can cost a similar amount to buying, because a new car loses much of its value early. Over a longer period, buying usually wins: once the loan is paid off, the car keeps its remaining value and each extra year costs only upkeep.

›Why does the calculator subtract the car's value when buying?

A buyer ends the period owning a car that can be sold or kept, while a lessee returns the car and owns nothing. Subtracting the car's value minus any loan still owed makes the two options comparable.

›What lease costs are easy to overlook?

The amount due at signing, acquisition and disposition fees, excess-mileage charges, wear-and-tear charges and early-termination fees. Leased cars often require more insurance coverage, too.

›How do I estimate depreciation?

Look up asking prices for the same model and trim a few years old and compare them with the new price. A car that loses 50% of its value in three years has depreciated about 21% a year.

Worked example

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