Car Lease vs Buy Calculator

Compare the true total cost of leasing versus buying a car over any period. See monthly payments, total outlay, and which option saves you more money.

Mathematical Audit

Car Lease vs Buy Formula

Compares the true total cost of leasing versus buying by summing all out-of-pocket cash over the same comparison period, then subtracting any remaining vehicle value at the end.

Lease Total Cost = (Monthly Lease Payment × Lease Term) + Due at Signing + Disposition Fee
Buy Monthly Payment = Loan Amount × [r(1+r)^n] / [(1+r)^n − 1]
Buy Total Cost = Down Payment + (Monthly Payment × Loan Term) − Estimated Resale Value
Net Cost Difference = Buy Total Cost − Lease Total Cost

The buy option includes an estimated resale (trade-in) value at the end of the comparison period, which reduces the net cost of buying. Leasing has no residual benefit since you return the car.

Operational Guide

How to Use the Car Lease vs Buy Calculator

1

Enter the vehicle price

Input the MSRP or negotiated purchase price of the vehicle you are considering.

2

Fill in lease terms

Enter the monthly lease payment, amount due at signing, lease term in months, and the disposition fee charged at lease end.

3

Fill in buy/finance terms

Enter your down payment, annual interest rate, and loan term in months.

4

Set the comparison period

Choose how many months to compare (typically the lease term). Enter an estimated resale value for the vehicle at that time if buying.

5

Click Compare

See the total cost of each option and the net savings of the cheaper choice.

Real-World Scenario Example

"A buyer compares leasing a $35,000 SUV for 36 months at $450/month ($2,500 due at signing) vs buying it with $5,000 down at 7% APR over 60 months."

Inputs

vehiclePrice:35000
leaseMonthlyPayment:450
leaseDueAtSigning:2500
leaseTermMonths:36
leaseDispositionFee:350
buyDownPayment:5000
buyInterestRate:7
buyLoanTermMonths:60
estimatedResaleValue:19000

Result

Lease total cost ≈ $18,050 over 36 months. Buying total cost after resale ≈ $19,700 net over 36 months, making leasing slightly cheaper in this scenario.

Important Disclaimer

These estimates are for educational and comparison purposes only. Actual lease and loan terms, fees, and resale values depend on your credit score, dealer negotiations, and market conditions. Consult a dealer or financial advisor before making a vehicle acquisition decision.

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E-E-A-T Genuineness

Sources & References

Leasing vs. Buying a New Car — Consumer Financial Protection Bureau

https://www.consumerfinance.gov/consumer-tools/auto-loans/answers/key-terms/#leasing-vs-buying