Lease vs Buy Calculator
Compare the total cost of leasing a car versus financing it. Enter lease terms, loan terms, and the car resale value to see which is cheaper.
Independently verified for accuracy
Calculator by Toolsloft ↗- Cheaper option
- Lease by 7679.04
- Total lease cost
- 17120
- Buy monthly payment
- 579.98
- Total buy cost (after resale)
- 24799.04
Compare the total cost of leasing a car against buying it with a loan. The tool adds up every lease payment plus the lease drive-off, then compares that to the loan payments and down payment for buying, crediting the resale value you keep when you own the car. It tells you which option costs less over the terms you enter.
How this is calculated
Lease cost = lease down payment + (monthly lease payment x lease months). Buy cost = purchase down payment + (loan payment x loan months) - residual value, where the loan payment uses the standard amortization formula on the price less the down payment. Crediting the residual value reflects that the buyer still owns the car at the end.
How to use
- Enter the car price and your loan down payment, rate, and term.
- Enter the lease payment, lease term, and lease drive-off cost.
- Enter the car's expected resale (residual) value when you would own it.
- Read the total lease cost, total buy cost, and which is cheaper.
Examples
- $35k car, $420 lease vs 6% / 60-mo loan:
lease cheaper by $7,679.04 - $30k car, $350 lease vs 5% / 48-mo loan:
lease cheaper by $745.96
FAQ
- Why does buying credit the resale value?
- When you finance and pay off a car, you still own an asset worth its resale value. Subtracting that value from the buy cost makes the comparison fair against a lease, where you hand the car back.
- Does leasing usually cost less?
- It depends on the numbers. Leasing often has lower monthly payments but no ownership at the end. Buying costs more up front but leaves you an asset. Enter your real quotes and resale estimate to see which wins.
- What residual value should I use?
- Use what you expect the car to be worth when the loan is paid off. A common starting point is the manufacturer's residual percentage or a used-value estimate for that age and mileage.