Lease vs Buy Car Calculator — True Cost Comparison
Quick answer: Enter both lease and buy terms plus how long you plan to keep a car. Get net cost and which option is cheaper for your timeline.
Compare the real cost of leasing versus buying a car over your actual ownership horizon (typically 3-10 years). Most calculators are biased toward dealer interests; this one factors equity buildup, depreciation, and the cost of multiple lease cycles. The cheaper option depends heavily on how long you keep the car.
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Last reviewed: April 2026Report an error
Lease Terms
Buy Terms
Use Kelley Blue Book / Edmunds for realistic estimates.
BUY is Cheaper
$2,358
Lease net cost: $28,000. Buy net cost (after $15,000 resale): $25,642. Buy saves $2,358 over 5 years.
Buy Monthly Payment
$594
Buy Total Cash Out
$40,642
Total Cost vs Net Cost (after resale equity)
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How to Use This Lease vs Buy Calculator
- 1Enter the vehicle price.
- 2Fill in lease terms: down payment, monthly, term length.
- 3Fill in buy terms: down payment, APR, loan term.
- 4Enter how many years you plan to analyze.
- 5Enter estimated resale value at the end of your analysis period.
- 6Read which option is cheaper and by how much.
Frequently Asked Questions
- Leasing wins if you (a) want a new car every 2-3 years, (b) drive under 12k miles/year, (c) value lower monthly payments and warranty coverage, and (d) the lease residual is artificially high (which makes the math favorable).
- Buying wins if you (a) plan to keep the car 6+ years, (b) drive heavy mileage (lease overage fees are brutal), (c) want to modify the car, or (d) want to eventually own the asset.
- Money factor is the lease equivalent of an interest rate. To convert: APR ≈ money factor × 2400. A money factor of 0.0025 = ~6% APR. Always negotiate this — many dealers add markup.
- Use Kelley Blue Book or Edmunds Real-World Resale Value to estimate. Reliable brands (Toyota, Honda) hold value better; luxury brands depreciate faster after the warranty expires.
- Most leases have a $300-500 disposition fee, plus charges for excess wear or mileage overages ($0.15-$0.30/mile over the limit). Factor these in if you frequently exceed your lease mileage.
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