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Lease vs Buy Calculator

Compare leasing versus buying a car with financing, equity, resale, mileage, insurance, maintenance, fees, and break-even analysis.

Lease vs Buy Calculator

Compare the economic cost, cash flow, equity, mileage, and flexibility of leasing versus buying.

Common assumptions

Buy option

Lease option

Lower estimated cost over 5 years

Buy

Estimated difference: $2,287

Total cost of buying

$38,008

Total cost of leasing

$40,295

Buy loan payment

$683

Lease monthly payment

$450

Estimated owner equity

$15,500

Break-even point

Month 48

Buy vs lease total cost

Buy$38,008
Lease$40,295

Cumulative economic cost

Lines include remaining loan balance and estimated vehicle equity.

BuyLease

Cost breakdown

Buy cash costs

Payments · running costs · fees

Lease cash costs

Payments · running costs · fees

Recommendation context

A longer use period gives buying more time to build equity and spread transaction costs.

Mileage and flexibility

Your mileage exceeds the lease allowance by 2,000 per year, adding an estimated $2,500.

Ownership and equity

Buying leaves estimated equity of $15,500 after the selected period. Leasing offers flexibility but normally leaves no owned vehicle unless a separate purchase option is exercised.

Assumptions summary

  • Comparison horizon: 5 years (60 months).
  • Buy financing: reducing balance at 7% for 60 months.
  • Estimated resale: $15,500; remaining loan: $0.
  • Maintenance starts at $600 and grows 8% yearly.
  • Lease payment: $450 using the quoted payment.
  • Lease-end fees are applied at each completed 36-month lease term.

This is an educational planning estimate. Dealer incentives, taxes on lease payments, acquisition fees, residual rules, financing fees, repairs, fuel, local law, early termination, and actual resale value can change the result. Compare official written offers before deciding.

How to Use

  1. 1.

    Enter the vehicle price, down payment, use period, mileage, and currency.

  2. 2.

    Add loan, tax, trade-in, maintenance, insurance, and resale assumptions for buying.

  3. 3.

    Add lease payment or money factor, residual, mileage allowance, deposit, insurance, and end fees.

  4. 4.

    Review total costs, monthly payments, equity, difference, break-even point, and charts.

  5. 5.

    Copy, share, or print the transparent comparison.

Features

Total buy versus lease comparison

Loan payment and remaining balance

Resale equity and depreciation

Mileage and lease-end fees

Quoted payment or money-factor mode

Break-even and cumulative cost chart

Cost breakdown visuals

Currency, sharing, copy, and print-to-PDF

Frequently Asked Questions

Is leasing or buying cheaper?+

It depends on the complete offers and how long you keep the vehicle. Enter both options over the same period to compare estimated costs.

Does the calculator include resale value?+

Yes. Estimated resale value minus the remaining loan balance becomes owner equity and reduces the economic cost of buying.

What is a lease money factor?+

It is a decimal finance charge used in many leases. Multiply it by about 2,400 for a rough APR equivalent.

How are mileage charges estimated?+

Mileage above the annual allowance is multiplied by the entered charge and selected use period.

What is the break-even point?+

It is the first estimated month when buying falls below leasing after previously costing more.

Is this financial advice?+

No. Verify taxes, incentives, insurance, maintenance, mileage, residual, fees, and official payment terms.

About this tool

Free Lease vs Buy Calculator

Use the WebToolsEdge Lease vs Buy Calculator to compare vehicle leasing and financing over the same ownership horizon. The calculation includes down payment, loan interest, trade-in, taxes, registration, maintenance growth, insurance, resale equity, monthly lease payments, money factor, residual value, mileage charges, security deposit, disposition fee, and wear-and-tear costs. Buying creates an asset, so this comparison deducts estimated owner equity from cash costs instead of treating the vehicle as worthless. Leasing normally creates no vehicle equity, but it can provide more flexibility for people who change vehicles frequently. The cumulative chart estimates whether buying becomes cheaper during the selected period, while the cost bars and breakdown charts make major cost categories easier to compare. Enter the monthly payment from a lease quote or estimate it with the money factor and residual value. Add realistic annual mileage because excess-mileage charges can materially change a lease. Use the transparent assumptions summary to review exactly what the calculator included before comparing the result with official dealer and lender offers. For related planning, use the Car Loan Calculator for a full finance schedule, the Fuel Cost Calculator for driving expenses, the Debt-to-Income Ratio Calculator for affordability, and the Savings Goal Calculator for a down payment plan. This tool is an educational estimate, not financial advice.

If buying looks competitive, inspect the finance offer and repayment schedule with the Car Loan Calculator. Add recurring travel costs through the Fuel Cost Calculator, check whether the payment fits household income using the Debt-to-Income Ratio Calculator, or plan the initial cash with the Savings Goal Calculator.