Lease vs. buy calculator
Compare two ways to drive, over the same stretch of time.
Your numbers
Includes entered taxes & fees in both modes.
Based on the assumptions you enter.
- Buy net cost
- $18,567.70
- Lease total cost
- $19,200.00
- Loan balance at period end
- $14,428.78
- Assumed resale value
- $24,000.00
Buying includes resale equity at the comparison date. Lease payment includes tax. Due-at-signing cash excludes installments already counted. Schedule shows the full buy loan.
Your options, side by side
| Option | Monthly payment | Total interest | Total cost |
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Your path to paid off
Remaining loan balanceWhere your money goes
Monthly amortization
Unrounded calculation; values displayed to cents| Month | Payment | Principal | Interest | Balance |
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Understand the numbers
How this calculator works
A fair comparison uses the same period and credits the buyer for equity at the end. We count finance down payment and installments paid by that date, then subtract resale value net of remaining debt. Leasing includes the entered monthly payments and upfront and end charges. Operating expenses are assumed equal and excluded. Enter lease due-at-signing cash excluding any monthly payment already counted.
A worked example
For a 36-month comparison, the buyer will still owe money on a 60-month loan. Subtracting the entire resale price without adding that remaining balance would understate buying costs. This calculator includes both.
The formula, in plain sight
Buy net cost = down payment + loan payments during period + remaining loan balance − resale value. Lease cost = monthly lease payment × comparison months + upfront cash + end fees. The lease payment must include applicable tax.
Keep your comparison going
Learn more from the Consumer Financial Protection Bureau’s auto loan resources. Confirm contract details with your lender.
Frequently asked questions about lease vs. buy
Is it better to lease or finance a car?
It depends on how long you want the car, how much you drive, and whether you value ownership or changing vehicles regularly. Leasing charges for use over an agreed period and mileage, while financing can leave you with equity after payoff. Compare total costs over the same period, including upfront cash, payments, fees, mileage, and any resale value.
Is leasing a car cheaper than buying?
Lease payments are often lower than loan payments for the same vehicle because a lease generally charges for expected depreciation over a set period, plus rent charges, taxes, and fees. That does not guarantee a lower total cost. Compare money due at signing, payments, mileage or wear charges, end fees, and the value you would have after buying.
Source: FTC financing and leasing guide
What are the disadvantages of leasing a car?
A lease may limit mileage, charge for excess wear or use, and require fees when you return the vehicle. You usually do not build ownership equity through the monthly payments, and changing or ending a lease early can carry costs under the agreement. Review the full contract, including due-at-signing amounts and end-of-lease charges, before comparing it with buying.
Source: FTC financing and leasing guide
How do mileage limits affect a car lease?
Your lease sets an allowed mileage amount for its term and may charge a per-mile fee if you return the car above that limit. A higher allowance can affect the quoted payment. Estimate your normal driving, check the exact limit and overage charge in writing, and include likely mileage costs when using the lease vs. buy calculator.
Related: Lease vs. buy calculator
Source: FTC financing and leasing guide
Should I lease or buy a car if I drive a lot?
High annual mileage can make a lease less suitable if your expected driving exceeds its allowance, because excess miles may add charges. Buying avoids lease mileage limits, though ownership has its own costs and vehicle resale value can change. Compare your expected miles, written lease terms, financing cost, and likely time with the car before choosing.
Source: FTC financing and leasing guide
Can I buy my leased car at the end of the lease?
You may be able to buy the car if your lease agreement includes a purchase option or the leasing company offers one at the end. Check the stated buyout price, purchase-option fee, taxes, and any other charges in the contract or written quote. Compare that total with the car’s value and the cost of other vehicles before deciding.
Source: FTC financing and leasing guide