Financial

Car Lease vs Buy Calculator

Compare the total cost of leasing versus buying a car. Factor in down payment, monthly payments, equity, depreciation, and end-of-lease options.

5 minutes Medium

How to Use This Calculator

Enter the vehicle information including price and expected depreciation
Fill in lease details (monthly payment, term, fees, residual value)
Input purchase financing details (down payment, interest rate, loan term)
Add ongoing costs (insurance, maintenance, fuel estimates)
Set your analysis period and investment assumptions
Click Calculate to compare total costs and see which option is better

Vehicle Information

Vehicle Price (MSRP) *

Manufacturer's suggested retail price

Negotiated Price

Your actual purchase/capitalized cost

Annual Depreciation Rate

Typical: 15-20% first year, 10-15% after

Sales Tax Rate

Your local sales tax rate

Lease Details

Monthly Lease Payment *

Your quoted monthly lease payment

Lease Term * Length of lease agreement

Lease Down Payment (Cap Reduction)

Due at signing (reduces monthly payment)

Acquisition Fee

Bank/lessor fee (typically $595-$1,095)

Disposition Fee

Fee at lease end if you return the car

Residual Value

Vehicle value at lease end (% of MSRP)

Annual Mileage Allowance

Miles per year included in lease

Excess Mileage Cost

$/mi

Cost per mile over allowance

Your Expected Annual Miles

Estimate your actual yearly driving

Lease payment includes sales tax Check if tax is already in quoted payment

Purchase/Financing Details

Down Payment *

Enter down payment amount (click $ to switch)

Loan Interest Rate (APR) *

Annual percentage rate for auto loan

Loan Term * Length of auto loan

Dealer/Documentation Fees

Processing, doc fees, etc.

Registration & Title Fees

One-time registration costs

Finance sales tax in loan Include sales tax in loan amount

Ongoing Costs (Monthly Estimates)

Lease Insurance (Monthly)

Leases often require higher coverage

Purchase Insurance (Monthly)

May be lower when you own outright

Lease Maintenance (Monthly)

Often covered by warranty during lease

Purchase Maintenance (Monthly)

Increases as vehicle ages

Monthly Fuel Cost

Same for both options (estimated)

Annual Registration Renewal

Yearly renewal fee

Analysis Settings

Analysis Period *

years

How long to compare costs (1-15 years)

Investment Return Rate

Expected return if money invested instead

At Lease End What you plan to do when lease ends

After Loan Payoff What you plan to do after owning

💡 Understanding Lease vs Buy

Leasing typically offers lower monthly payments but you never own the car. Buying costs more upfront and monthly, but you build equity and can sell or trade the vehicle later. This calculator compares total costs including opportunity cost of your down payment.

🚗 When Leasing Makes Sense

Leasing may be better if you: want a new car every 2-3 years, drive less than 12,000-15,000 miles/year, prefer lower monthly payments, don't want to deal with selling a car, or can write off the lease as a business expense.

🏆 When Buying Makes Sense

Buying may be better if you: plan to keep the car long-term (5+ years), drive more than 15,000 miles/year, want to customize your vehicle, prefer no mileage restrictions, or want to build equity to use as a trade-in.

🔗 Save & Share Your Analysis

Your lease vs buy comparison is automatically saved in the URL. You can bookmark this page to save your calculation, or use the Share button to send it to others. When you return or share the link, all values will be restored automatically.