Lease vs Buy Calculator
Compare leasing a car with buying it with a loan over the same period: lease total versus net cost of buying after resale value and remaining loan balance.
Expected value of the car at the end of the lease term.
Results
- Compared over the lease term. Net cost of buying = down payment + loan payments made + loan balance still owed − resale value. Enter prices including tax; insurance and maintenance are not included.
What is Lease vs Buy Calculator?
Compares the cost of leasing and buying the same car over the lease term. For buying it counts the down payment and loan payments made, adds the loan balance still owed and subtracts what the car is worth at the end, so both options are compared on equal terms.
How to use Lease vs Buy Calculator
- Enter the lease monthly payment, lease term, amount due at signing and any end-of-lease fees.
- Enter the Vehicle price, Down payment, loan rate and loan term for buying.
- Enter the expected Resale value at the end of the lease term and read which option is cheaper.
Example
Lease 300/month × 36 + 2,000 at signing; buy 30,000 with 3,000 down at 5% for 60 months, resale 18,000
Lease 12,800.00; net cost of buying 14,956.86; leasing is cheaper by 2,156.86
When to use Lease vs Buy Calculator
Use it when a dealer offers both options. It assumes prices include tax and ignores insurance, maintenance, mileage penalties and the value of keeping the car longer than the lease term, which often favours buying.
How Lease vs Buy Calculator works
Lease total = due at signing + monthly payment × months + end fees. For buying, the loan payment is M = P·r / (1 − (1 + r)^−n). After the lease-term months, the remaining balance is B = P(1 + r)^k − M((1 + r)^k − 1) ÷ r. Net cost of buying = down payment + M × k + B − resale value. The difference between the two totals is shown as the verdict.
Common Use Cases
- Comparing a 36-month lease with a 60-month loan
- Testing how resale value changes the answer
- Checking whether a lease deal is really cheap
- Business vehicle cost comparisons
FAQs
Why subtract the resale value?
When you buy, you own the car at the end of the period; its value is money you can recover by selling it.
Why add the remaining loan balance?
You still owe it at the end of the comparison period, so it is part of the cost of having bought the car.
What about mileage limits?
Excess mileage charges belong in End-of-lease fees.