Lease vs Buy Calculator
Compare the true cost of leasing against financing the same car.
Please note: Estimates for planning only. Real fuel economy, depreciation, insurance and lease terms vary widely by vehicle, region and driving style. Confirm figures against a dealer quote or your own records before relying on them.
What the Lease vs Buy Calculator does
Leasing and buying are compared properly by net cost: cash paid out, minus whatever value you still hold at the end. A lease leaves nothing behind, so its cash out is its true cost; buying leaves an asset whose value offsets the payments made.
Formula
Buy net cost = Down + Payments made − (Resale value − Loan balance)Lease net cost = Lease down + Payments madeEquity = Resale value − Loan balance
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Vehicle price | selected currency | Yes | Accepts more than 0. |
| Years to compare | number | Yes | Accepts 1 or more, up to 10. |
| Lease: cash down | selected currency | Optional | Accepts 0 or more. |
| Lease: monthly payment | selected currency | Yes | Accepts more than 0. |
| Buy: down payment | selected currency | Optional | Accepts 0 or more. |
| Buy: loan APR | % | Yes | — |
| Buy: loan term | months | Yes | Accepts 1 or more. |
| Annual depreciation after year one | % | Yes | — |
| First year depreciation | % | Yes | — |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Vehicle price, Years to compare, Lease: monthly payment and Buy: loan APR and 3 more.
- Optionally add Lease: cash down and Buy: down payment.
- Select Calculate.
Worked example
A $35,000 car over 3 years: lease at $452/month with $2,000 down, or finance $30,000 at 6% over 60 months with $5,000 down.
- Price
- $35,000
- Years
- 3
- Lease
- $452
- Buy APR
- 6%
- Term
- 60
Buying pays out $25,879 and retains $7,144 of equity — a net $18,736 against the lease’s $18,272. Over three years leasing edges it by $464; hold the car longer and buying pulls ahead.
Frequently asked questions
When does leasing actually win?
Over short holding periods, on cars that depreciate hard, or when you want a new vehicle every three years. The longer you keep a car, the more buying pulls ahead.
What is negative equity?
When the loan balance exceeds the car’s value. It is common in the first year or two of a long loan with little money down, and it traps you until the gap closes.