Car Lease vs Buy Calculator
Compare the true net cost of leasing versus buying a car, accounting for the resale value if purchased.
Results
What is it?
This calculator compares the true net cost of leasing versus buying a car. For buying, it subtracts the estimated resale value from total payments to show what you actually "spent." For leasing, you return the car at the end with no asset remaining.
How to use
Enter the car price, down payment (or cap reduction for leases), loan APR and term (for buying), monthly lease payment and lease term, and the estimated resale value after paying off the loan. The calculator shows the net cost for each path.
Example scenario
A $35,000 car with $5,000 down at 6% APR over 5 years costs about $580/month. Total payments of $34,800 minus $20,000 resale value = net buy cost of $19,800. A 3-year lease at $450/month with $5,000 down = $21,200 total — making buying slightly cheaper while also ending with a vehicle you own.
Pro tip
Leasing makes sense if you drive under 12,000 miles/year, want a new car every 3 years, and prefer predictable expenses. Buying wins financially if you keep the car 7+ years and drive high mileage. Never capitalise more than 20% of the car price in a lease down payment.