Buy vs Lease Calculator
Compare buying vs leasing a car: enter price, down payment, APR, and term to see total cost side by side.
Should you buy or lease? Enter the purchase details (price, down payment, APR, loan term) and the lease offer (down payment, monthly payment, term) to compare total out-of-pocket cost. The calculator also shows each option's effective monthly cost and flags when the terms differ so you compare fairly.
Compare the total cash out-of-pocket for buying versus leasing. For an apples-to-apples comparison, use the same term for both.
Buy
Lease
How to use this calculator
- Enter the car's purchase price, your down payment, the loan APR, and the loan term in months.
- Enter the lease's down payment, monthly payment, and lease term.
- Press Calculate to see total cost for each side.
- Compare the totals — use the same term on both sides for the fairest comparison.
The formula
Loan payment = P × r(1+r)^n ÷ ((1+r)^n − 1); total buy = down + payment × months; total lease = down + monthly × months
Worked example
Buying a $30,000 car with $5,000 down at 6% APR over 60 months costs $483.32/month — $33,999.20 total. A $3,000-down, $350/month 36-month lease totals $15,600, or $18,399.20 less out-of-pocket (before counting the resale value buying leaves you with).
Frequently Asked Questions
Is it cheaper to buy or lease a car?
It depends on the deal and how long you keep the car. Leasing usually costs less per month but you return the car at the end with nothing to show for it; buying costs more upfront but you own an asset you can keep driving payment-free for years. Run your actual numbers here — and remember this tool compares cash out-of-pocket only, not the resale value you'd keep when buying.
How do I make a fair buy-vs-lease comparison?
Use the same term length on both sides. A 60-month loan versus a 36-month lease covers different time spans, so the totals aren't directly comparable. The calculator warns you when the terms differ and shows each option's effective monthly cost (total ÷ months), which is the fairest single number to compare.
Does this calculator include resale value?
No — it compares total cash out-of-pocket, which is the cleanest apples-to-apples number. Buying has a hidden advantage the math here doesn't show: at the end of the loan you own a car with resale value, while a lease ends with nothing. Factor in your car's expected resale value separately when deciding.
What about lease mileage limits and fees?
Most leases cap you at 10,000–15,000 miles per year with per-mile overage fees, plus potential wear-and-tear charges at turn-in. If you drive a lot or tend to keep cars rough, add those expected fees to the lease side mentally. This calculator sticks to the headline numbers; your lease contract has the fine print.