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Lease vs. Buy a Car Calculator
Compare what leasing and buying actually cost in cash over the years you choose. Every field starts blank — fill in only what you know.
Calculation inputs
All fields are optional. Type your comparison years as a list, for example 3, 5, 7, 10.
Results
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Complete the fields and select Calculate to show results here.
Estimates only. Actual lease/loan terms, depreciation, and resale values vary by vehicle and market.
About this calculator
This calculator compares the total cash outlay of leasing versus buying a vehicle across whichever time horizons you choose, from a handful of years to a decade or more. It's for anyone deciding between financing a purchase and repeatedly leasing.
How the calculation works
- Lease total = due at signing (per lease term started) + monthly payment × months + mileage overage
- Buy total = down payment + sales tax + loan payments over the loan term + maintenance after payoff − resale value
- Past the loan term the buyer's only cost is optional maintenance
- Checkpoints come from the comparison years you type
Notes and assumptions
Repeat leasing charges the due-at-signing amount again at each new lease term.
Resale value is credited at every checkpoint, so short horizons may look better for buying than they are in practice.
Insurance, fuel, and registration are excluded from both sides.
How it works in plain English
For leasing, you can enter the amount due at signing, the monthly payment, the lease term in months, an annual mileage limit, an overage fee per extra mile, and your actual annual mileage. For buying, you can enter the vehicle price, down payment, interest rate, loan term, sales tax rate, an estimated resale value at the end of the period, and ongoing maintenance costs once the loan is paid off.
The calculator computes lease cost by adding up the amount due at signing (repeated each time a lease renews, if you choose to keep leasing), the monthly payments, and any mileage overage fees based on how far your driving exceeds the limit. Buy cost adds the down payment, sales tax, and loan payments, plus maintenance after the loan ends, then subtracts the vehicle's estimated resale value at the end of the period.
Because leasing and buying behave differently over time — a lease resets its costs with each renewal while a purchased car eventually has no more payments — the calculator lets you compare totals at several checkpoints, such as 3, 5, 7, and 10 years, so you can see which option is cheaper depending on how long you actually keep or repeat the arrangement.
The formula
- Lease cost = due at signing (per term) + monthly payments over the period + mileage overage fees
- Buy cost = down payment + sales tax + loan payments over the period + maintenance after the loan ends - resale value
Worked example
Suppose a $32,000 car can be leased for $1,500 down and $350 a month on a 36-month term with a 12,000-mile annual limit, or bought with $3,000 down, a 6% loan over 60 months, 7% sales tax, and an estimated resale value of $14,000 after 7 years.
Over 7 years, leasing (renewing the lease again after the first 36 months ends) accumulates two signing fees plus 84 months of payments, while buying accumulates the down payment, tax, 60 months of loan payments, two years of maintenance after the loan is paid off, then subtracts the $14,000 resale value. Comparing the two totals at the 7-year checkpoint shows which option required less total cash outlay for that specific driving and ownership pattern.
Frequently asked questions
Does the calculator account for the value of owning the car outright after a loan is paid off?
Yes, indirectly — the resale value you enter for the buying scenario is subtracted from the total cash outlay, which credits you for the equity you'd still hold in the vehicle at that checkpoint. Leasing has no equivalent credit since you never own the leased vehicle.
What does 'repeat leasing every term' mean?
It means that once a lease term ends, the calculator assumes you sign a new lease of the same length and terms rather than stopping. This lets you compare a long-term pattern of continuously leasing against continuously owning, rather than just a single lease period.
How are mileage overage fees calculated?
The calculator compares your entered annual mileage against the lease's annual mileage limit; any miles driven above that limit are multiplied by the overage fee per mile you entered. This annual overage cost is then applied proportionally across the months you're paying on the lease.
Why does the comparison change depending on the time horizon?
Leasing tends to have recurring costs that continue or reset with each renewal, while buying has a loan that eventually gets paid off, after which only maintenance and no financing costs remain. Because of this, buying often becomes relatively cheaper the longer you keep the vehicle, while leasing can look more competitive over shorter periods.
Are all fields required to get a result?
No, every field is optional and starts blank; the calculator only uses the values you actually fill in. This lets you model a lease-only comparison, a buy-only estimate, or a full side-by-side comparison depending on which numbers you have available.