Compare the total cost of leasing versus buying a car over the same period. See which option saves more based on your down payment, rate, and term.
The lease-versus-buy decision depends on your driving habits, financial situation, and how long you plan to keep the vehicle. Leasing offers lower monthly payments and the ability to drive a new car every few years, but you build no equity and face mileage restrictions.
Buying costs more per month but results in a paid-off asset. Over a long time horizon (6+ years), buying is almost always cheaper. Over shorter periods, leasing can be competitive, especially if you value always having the latest features and warranty coverage.
This calculator compares both options over the same time period, factoring in the vehicle's residual value to give you a fair comparison of total cost.
Whether you drive a compact sedan, a full-size SUV, or a pickup truck, accurate lease vs buy figures help you plan smarter and avoid costly surprises at the pump or dealership. Use this tool regularly to track changes over time and adjust your transportation budget accordingly.
Without a direct comparison, it's impossible to know which option truly costs less. Monthly payment comparisons are misleading because buying creates equity. This tool provides a true total-cost comparison. Results update instantly as you adjust inputs, making it easy to explore different scenarios and find the best option for your driving needs and budget.
Lease Total Cost = (Monthly Lease × Term) + Down Payment + Fees Buy Total Cost = (Monthly Loan × Term) + Down Payment − Residual Value Net Buy Cost = Total Paid for Purchase − Vehicle Value at End
Result: Lease: $16,364 | Buy: $14,200 (over 5 years)
Lease total over 36 months: ($399 × 36) + $2,000 = $16,364, with no equity. Buy over 60 months: ($685 × 60) + $5,000 = $46,100. But the car is worth ~$20,900, so net cost is $25,200. Over 5 years (one lease + used car costs vs. owned), buying costs less long-term.
The fair way to compare lease vs. buy is total cost over the same period. For a purchase, subtract the car's estimated value at the end from total payments to get the net cost. For a lease, the total cost is simply all payments and fees, since you return the car.
Leasing wins if you drive under 12,000 miles/year, want a new car every 3 years, value low maintenance costs, and are in a high tax bracket (some states allow lease payment deductions for business use).
Buying wins if you keep cars long-term, drive high miles, want to customize, or want payment-free years after the loan is paid off. A bought car driven for 10 years is significantly cheaper than three consecutive leases.
Over the long term (6+ years), buying is almost always cheaper because you eventually own the car outright. Leasing has lower short-term costs but you never build equity and always have a payment.
Lower monthly payments, always driving a newer car with warranty coverage, no resale hassle, and lower repair costs. You also avoid depreciation risk — you return the car at lease end.
Mileage restrictions (typically 10,000–15,000/year), no equity at the end, potential wear-and-tear charges, and higher long-term cost if you always lease. Early termination fees can be steep.
Buying makes more sense if you: drive more than 15,000 miles/year, plan to keep the car 5+ years, want to customize the vehicle, or want to eliminate car payments eventually. Review your results periodically to ensure they still reflect current conditions.
Yes. Negotiate the sale price (cap cost), money factor, and dealer fees. The residual is set by the manufacturer. A lower cap cost directly reduces your monthly payment, just like with a purchase.
You can return the car (pay any fees for excess miles/wear), buy the car at the residual price, or sometimes trade into a new lease. If the car is worth more than the residual, buying it can be a good deal.