Lease vs Buy Calculator
Compare the total cost of leasing versus buying a car — see which saves more money over your intended ownership period.
Lease vs Buy Comparator
Total cost of each option side-by-side
How It Works
Total lease cost = down payment + all monthly payments. Total buy cost = all loan payments minus the estimated resale value at the loan term end. This net cost comparison gives a like-for-like comparison.
How to Use This Calculator
- Enter lease terms: monthly payment, term, and down payment.
- Enter purchase terms: vehicle price, loan APR, term in months.
- Enter the estimated resale value at the end of the purchase term.
- Click Calculate — total cost of each path appears.
- The cheaper option is highlighted — but also consider lifestyle preferences (mileage limits for leasing).
Worked Example
Reference Table
| Factor | Leasing | Buying |
|---|---|---|
| Upfront cost | Low | Higher (down payment) |
| Monthly payment | Lower | Higher (includes equity) |
| End of term | Return car | Own the asset |
| Mileage limits | Yes (10–15k mi/yr typical) | No |
| Customization | Restricted | Unrestricted |
| Long-term cost | Higher (perpetual payments) | Lower (own outright) |
Frequently Asked Questions
Is leasing better if I want a new car every 3 years?
Generally yes — the convenience of always driving a new car in warranty is maximized by leasing. Total lifetime cost is higher, but you avoid large repair bills and always have the latest safety technology.
What are the hidden costs of leasing?
Excess mileage charges ($0.10–0.30/km over limit), wear-and-tear charges at return, disposition fees ($300–500 at return), and early termination penalties. Always read the full lease agreement.
Can I negotiate a car lease like a purchase price?
Yes — the capitalized cost (effective selling price in the lease) is negotiable. Reducing it lowers monthly payments. The money factor (interest equivalent) and residual value are also negotiable at some dealers.
Is it better to buy at the end of a lease?
Only if the residual value in your lease is below current market value — then buying at residual and reselling can yield a profit. If market value has dropped, simply returning the vehicle is usually the better choice.
