Lease vs Buy Calculator

See whether leasing or buying is cheaper for you by comparing net cost — payments minus the car's resale value — over the same period.

Buying

Price ($)

Down payment ($)

APR (%)

Resale value after term ($)

Leasing

Monthly lease ($)

Down/drive-off ($)

Comparison period (months)

Result

Net cost to buy$0

Net cost to lease$0

Lease vs buy: the real comparison

The honest way to compare leasing and buying is by net cost over the same period. When you buy, you eventually own an asset with resale value, so your true cost is everything you paid minus what the car is worth at the end. When you lease, you simply pay for the depreciation and a rent charge during the term and walk away owning nothing.

This tool finds the net cost to buy (down payment + all loan payments − estimated resale value) and the net cost to lease (drive-off + all lease payments), then shows which is cheaper for your chosen period.

Beyond the math: Leasing offers lower payments, a car under warranty, and a new vehicle every few years, but mileage caps and wear charges apply. Buying costs more short-term but pays off if you keep the car well past the loan.

Frequently asked questions

Is leasing or buying cheaper?

Over the long run, buying and keeping a car is almost always cheaper because you stop making payments once the loan ends. Leasing wins on lower monthly cost and always driving a newer car.

What is resale value?

It's what your car is worth when you sell or trade it at the end of the comparison period. A realistic estimate is essential for an accurate buy-vs-lease comparison.

Are mileage limits important?

Yes. Most leases cap annual mileage (often 10,000–15,000 miles) and charge per mile over the limit, which can change the math significantly for high-mileage drivers.