Car Lease vs Buy Calculator

Anyone deciding whether to lease or finance their next car, who wants a real total-cost comparison rather than just matching monthly payments. Lease payments are usually lower — but that lower number hides the fact that you end the lease owning nothing.

Leasing's cost is simple: the cash due at signing plus every monthly payment. At the end you hand the car back.

Buying costs your down payment plus the loan payments made over the same period — but you get something back. Sell the car at its resale value, pay off whatever's left on the loan, and that equity offsets your cost. This calculator compares the two totals over the lease term so it's apples-to-apples.

A leased car's depreciation is baked into every payment, and you never recover it. When you buy, the resale value is yours. The longer you keep a bought car after the loan is paid off, the more the math favors buying — this calculator only counts through the lease term, so it's a conservative view for buyers.

This leaves out insurance and maintenance differences, sales tax treatment (which varies by state and by lease vs. purchase), and lease penalties for excess mileage or wear. Leasing can still make sense if you value always driving a newer car under warranty. Adjust for your situation.