Lease vs Buy Car Calculator

Summary

Enter your car price, loan and lease terms, and see the true total cost of leasing versus buying side by side.

How it works

1. Enter the vehicle sale price and any down payment or cap cost reduction.
2. For the buy scenario, enter the loan APR and loan term in months.
3. For the lease scenario, enter the money factor (or APR), residual value percentage, and lease term.
4. The calculator computes total loan cost (payments + down payment minus remaining equity) and total lease cost (all payments + any fees).
5. Review the side-by-side summary to see which option has a lower total cost over the comparison period.

Use cases

• Comparing a 36-month lease to a 36-month loan on the same vehicle.
• Understanding how a higher residual value makes a lease more attractive.
• Evaluating whether a lower monthly lease payment actually costs less in total.
• Planning a car purchase budget by seeing full interest costs upfront.
• Deciding between leasing a new car every 3 years vs. owning long-term.
• Checking the break-even point where buying becomes cheaper than leasing.

Frequently Asked Questions