Planning tool
Lease vs. Buy Car Calculator
Compare leasing with financing a vehicle over the same time period. Include lease fees and mileage, purchase financing, operating costs, and estimated resale value.
What the two totals include
The lease side adds the separate upfront amount, monthly payments and entered running costs, estimated tax on lease payments, return fee, and mileage overage. Enter the amount due at signing excluding recurring lease payments so the first payment is not counted twice.
The buy side adds the down payment, purchase tax and fees, loan payments made during the comparison period, remaining loan balance at the end, and entered running costs, then subtracts estimated resale value. This treats the remaining balance as a cost and resale as an offset so both options end with no vehicle ownership at the comparison date. Future monthly flows are discounted using the effective monthly equivalent of the annual rate you enter; 0% means undiscounted cash totals.
Worked example with the prefilled values
The default illustration compares 36 months of leasing at $450 per month with $2,500 due up front, 6% tax on payments, a $395 return fee, and 12,000 miles per year at the lease allowance. With $250 per month entered for insurance and upkeep, its undiscounted estimate is $29,067.
The purchase illustration uses a $38,000 vehicle, $4,000 down, 6% sales tax, $900 financed fees, 6.5% APR over 60 months, $275 monthly running costs, and an estimated $22,000 resale value after three years. With 0% discounting, the modeled cost is about $34,420, around $5,353 above the lease estimate. The result is sensitive to resale value, wear charges, mileage, insurance, repairs, and your financing offer; it is not a prediction of what either option will cost.
Inputs to get from the written quotes
- Lease: term, payment, amount due at signing, mileage allowance, per-mile overage, disposition fee, taxes, and any purchase option. Ask about early termination and excess-wear charges; they are not modeled here.
- Purchase: out-the-door price, down payment, APR, loan term, financed fees, and a conservative resale estimate for the comparison date. Maintenance, registration, fuel or charging, and repair estimates should reflect how you expect to use the vehicle.
- Comparison: use the same period and similar vehicles and coverage. Add costs to the appropriate side; do not treat a lower monthly payment as lower total cost by itself.
For contract details, see the FTC guide to financing or leasing a car and the CFPB overview of leasing versus buying. Terms, taxes, and consumer protections vary by location and contract.
Frequently asked questions
What does the lease-versus-buy comparison include?
It compares estimated lease payments and fees over the selected period with estimated purchase cash paid, loan payments, remaining loan balance, estimated resale value, and the operating costs you enter.
How important is the resale value?
It can materially change the buy estimate. Enter a conservative estimate for the vehicle’s expected value at the end of the comparison period. This calculator does not forecast depreciation or appraise a vehicle.
Does the lease estimate include mileage charges?
Yes. It estimates excess-mileage charges from annual miles driven above the lease allowance and the per-mile rate entered. Actual lease rules, taxes, fees, and wear charges vary by contract and location.