Auto Lease vs Buy Calculator
Compare the estimated cost of leasing a vehicle versus financing and buying it. See monthly costs, total out-of-pocket cost, estimated vehicle equity, and which option may cost less over your selected comparison period.
Lease vs Buy Details
Enter your financing and lease assumptions below.
Buy / Finance
Enter the estimated purchase and loan details.
Lease
Enter the main costs shown in the lease offer.
Comparison
Choose the period and estimated vehicle value to compare.
For the clearest comparison, use a comparison period that matches or is shorter than the lease term. Enter the lease amount due at signing excluding the first monthly payment so that payment is not counted twice. Buying estimates your remaining loan balance and vehicle equity.
Enter your details, then click Compare Lease vs Buy to see your results.
How the Lease vs Buy Calculator Works
Buying builds ownership in the vehicle, so this calculator estimates the value of the car at the end of the comparison period and subtracts any remaining loan balance to estimate your equity.
Leasing generally does not create vehicle ownership, so the estimated lease cost is based on monthly lease payments, upfront costs entered separately from the first monthly payment, and applicable lease-end fees.
A lease may provide a lower monthly payment, while buying may offer better long-term value because you retain the vehicle or its resale value.
How to Use the Auto Lease vs Buy Calculator
Use purchase and lease quotes for comparable vehicles and the same period of use. Enter purchase price, down payment, rate, loan term, tax, and purchase fees on the buy side. On the lease side, enter the quoted monthly payment, lease term, signing costs excluding the first monthly payment, and end fees. Finally enter your comparison period and a realistic resale estimate for the purchased vehicle.
Auto Lease vs Buy Calculator: 36-Month Example
Use the displayed defaults: $35,000 purchase price, $5,000 down, 6.5%, a 60-month loan, no sales tax, and $500 purchase fees. Compare that with a $450 monthly lease for 36 months, $3,000 signing costs excluding the first payment, and $395 end fees. At a 36-month comparison period and $23,000 future vehicle value, the auto lease vs buy calculator estimates:
- Buy cash paid: $26,483.63, with a remaining loan balance of $13,396.58.
- Buy equity: $23,000 value minus $13,396.58 owed = $9,603.42.
- Effective buy cost: $26,483.63 cash paid minus $9,603.42 equity = $16,880.21.
- Lease cash cost: $3,000 + 36 × $450 + $395 = $19,595.
Buying is about $2,714.79 lower in modeled effective cost, even though leasing requires less cash during the period. Equity is not cash in your bank account; realizing it normally requires selling the vehicle and settling the loan. Selling costs are not included here.
Test Auto Lease vs Buy Calculator Resale Assumptions
If the purchased vehicle is worth $3,000 less than expected, the effective buy cost rises by $3,000, with the other inputs unchanged. The apparent winner can therefore change. Try low, middle, and high resale values based on comparable age, mileage, condition, and local listings rather than relying on a single optimistic forecast.
Auto Lease vs Buy Calculator FAQs
Why exclude the first payment from signing costs?
The monthly-payment total already counts it. If the quote says $3,450 due at signing including a $450 first payment, enter $3,000 in the signing-cost field. Ask the dealer to itemize taxes, acquisition fees, deposits, and capitalized-cost reductions rather than counting any item twice.
Can I compare 60 months with a 36-month lease?
A single lease quote cannot price the replacement transport you need after that lease ends. For a clear comparison, match the period to the lease term. Shorter periods may also involve early-termination obligations the simplified model does not capture.
Are mileage and wear charges included?
Only costs explicitly entered are represented. For example, 6,000 excess miles at a hypothetical $0.25 per mile means another $1,500. Review the actual allowance and rate, wear rules, taxes, maintenance, insurance, and any purchase-option costs separately.
Does the lease residual equal my future resale value?
Not necessarily. A contract's residual is part of its pricing and purchase-option terms. The buy-side resale input is your estimate of what the purchased car could sell for. They serve different purposes.
Read the FTC financing and leasing guide. Our depreciation calculator can help test value scenarios. The auto lease vs buy calculator provides an estimate and does not assess a lease contract's suitability for your circumstances.
See How Resale Value Changes the Outcome
In the auto lease vs buy calculator, keep every default input unchanged except the future vehicle value. Reducing that value from $23,000 to $20,000 raises the effective buy cost from $16,880.21 to $19,880.21. The lease cost remains $19,595, so leasing becomes approximately $285.21 lower in this scenario. The result changes because buying leaves less equity, not because its monthly loan payment changed.
That sensitivity is useful when you are uncertain about resale value. Run the auto lease vs buy calculator with several realistic estimates instead of selecting whichever value produces your preferred result. Record whether each estimate represents a trade-in offer or a private-sale value, and include expected selling expenses separately.
Compare the Same Practical Outcome
Check the number of vehicles, miles and months represented by each side. A three-year lease and six years of buying are different services. If the car is kept after the loan ends, model that longer ownership period separately, including running costs. For the practical restrictions as well as the numbers, read our lease-versus-buy guide.
