Car Lease vs Buy Calculator
Compare total cost of leasing versus buying a car including monthly payments, down payment, residual value, and depreciation over your ownership period.
Lease vs Buy is one of the most common financial decisions when getting a new vehicle. Each option has different costs, benefits, and trade-offs.
Leasing costs:
Total Lease Cost = (Monthly Payment x Months) + Down Payment + Fees
You return the car at the end. You never own it, so there is no resale value to recover.
Buying costs (with a loan):
Total Buy Cost = (Monthly Payment x Months) + Down Payment + Interest - Resale Value
After paying off the loan, you own the car outright. The resale value offsets your total cost.
Key differences:
| Factor | Lease | Buy |
|---|---|---|
| Monthly payment | Lower | Higher |
| Ownership | No | Yes |
| Mileage limits | Yes (typically 10k-15k/year) | No |
| Customization | Limited | Full freedom |
| Long-term cost | Higher if repeating | Lower over 5+ years |
| Maintenance | Often under warranty | Your responsibility after warranty |
When leasing makes sense: You prefer new cars every 2-3 years, drive low miles, and want lower monthly payments.
When buying makes sense: You plan to keep the car 5+ years, drive high miles, or want to avoid ongoing payments.
The break-even point is typically around 3-4 years. Beyond that, buying almost always costs less.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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