Lease vs Buy Car Calculator
Compare the net cost of buying and leasing a car over the same number of months. Buying counts the down payment, the loan payments and the value the car still has at the end. Leasing counts the amount due at signing and the monthly lease payments.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Buying net cost is the down payment plus all the loan payments, minus the car's value at the end. The loan payment uses the standard loan formula at the rate you enter.
Leasing net cost is the amount due at signing plus the monthly lease payments. A lease ends with the car returned, so no end value is subtracted. Mileage limits and wear charges are not included.
Worked example
Over 36 months, buying with $4,000.00 down and a loan costs $17,665.31 after you count the car's value of $17,000.00 at the end. Leasing costs $19,780.00. The buy minus lease difference is -$2,114.69.
Questions
Is leasing always cheaper?
No. Leasing often costs less per month, but over a longer time owning often ends up cheaper, because the payments stop.
What value should I use for the end?
Use a realistic estimate of what the car will be worth when you would sell or return it. Check current resale figures for that model.
Does this include taxes and fees?
No. Add sales tax, registration and lease fees to both sides if they apply, since they can change the answer.
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