Category
Auto
Car Lease vs Buy Calculator
Compare lease total cost versus buy net cost over your chosen ownership term
Estimated time
2 min
Lease vs Buy Inputs
Compare lease total out-of-pocket cost against buy net cost over the same ownership period.
$
Cash paid up front for the buy option. This reduces financed principal.
$
%
$
$
$
Expected resale or trade-in value at the end of your comparison term.
$
Formula Summary
Buy principal = price - down payment
Monthly payment = P x r / (1 - (1 + r)^(-n))
Buy net cost = buy cash paid - (estimated value - remaining loan balance)
Lease total cost = upfront fees + monthly lease x comparison months + lease-end fees
Difference = buy net cost - lease total cost
How It Works
This calculator helps you compare cash costs and estimated equity impact using one shared comparison term.
Buying includes loan amortization and estimated vehicle value at the end of the term. Leasing includes monthly payments plus up-front and end fees.
- Buy principal = vehicle price - down payment.
- Loan payment is calculated with standard amortization formula.
- Remaining loan balance is estimated after comparison months.
- Buy net cost = cash paid - estimated equity at term end.
- Lease total cost = upfront fees + monthly lease payments + end fees.
Example Calculations
36-month ownership window
$42,000 price, $5,000 down, 6.4% APR, 60-month loan, $520 lease, $2,500 upfront, $450 end fee, $26,000 estimated value
Lease total: $21,670, Buy net: $19,827, Buying lower by about $1,843
Higher retained value at month 36 can make buying cheaper even if the loan is not fully paid off.
Lower resale expectation
$42,000 price, $5,000 down, 6.4% APR, 60-month loan, same lease terms, $22,500 estimated value
Buy net cost increases and may approach or exceed lease total
Lease vs buy results are very sensitive to expected value at comparison end.
Higher monthly lease
Same buy assumptions, lease payment raised from $520 to $620
Lease total increases by $3,600 over 36 months
A moderate lease payment change can shift the comparison quickly.
Frequently Asked Questions
Does this include taxes and insurance?
No. This model compares financing and ownership structure. Add taxes, insurance, and maintenance separately if needed.
What if my loan term is longer than the comparison term?
That is handled by estimating remaining loan balance and subtracting it from estimated vehicle value to derive equity.
Can buy net cost be negative?
It can happen if estimated equity exceeds cash paid during the comparison period. Treat this as a directional planning estimate only.
Should I use trade-in value or private sale value?
Use whichever value better reflects how you expect to exit the vehicle at the end of the comparison period.
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