Car Lease vs Buy Calculator
Compare the total cost of leasing a car against buying it and keeping it for the same period.
Last updated · View algorithm, constants and default inputs (JSON)
About this calculator
Compare entered costs in USD over the same period. This simplified model excludes lease taxes and fees, insurance, maintenance, mileage charges, purchase fees and local contract terms. Get written lease and purchase quotes, including the amount due at signing and end-of-term charges.
Worked example
calculated with the default values below
Vehicle price (USD) 38,000 USD · Comparison period 36 months · Lease payment 499 USD/month · Lease down payment 3,000 USD · Purchase interest rate 6.5 % · Loan term 60 months · Purchase down payment 5,000 USD · Annual depreciation 15 % Total cost to lease 20,964 USD · Net cost to buy (after resale) 19,402 USD · Equivalent monthly payment 645.68 USD/month · Vehicle value at the end 23,337 USD · Cheaper option Buying is cheaper over this period
General background references
Disclaimer
These calculators give estimates for general information only. Real fuel consumption, performance and range vary with driving style, load, terrain, temperature and vehicle condition. Do not rely on these results for towing limits, payload or braking decisions — use the rating plate of your vehicle.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
Cost_L = M_L·n + D_L; Cost_B = D + M·k + B_k − V; V = P(1 − d ÷ 100)^(n ÷ 12)
- Cost_L
- Total lease cost
- Cost_B
- Net cost of buying
- M_L
- Lease monthly payment
- M
- Loan monthly payment
- B_k
- Loan balance after k months
- V
- Car value after n months
- n
- Comparison period, months
- D_L
- Lease down payment
- D
- Purchase down payment
- k
- Months of loan paid: k = min(n, loan term)
- P
- Vehicle price
- d
- Annual depreciation, %
Loan amortizes at annual rate ÷ 12; k = min(n, loan term); buy cost nets out resale value.
Frequently asked questions
What does the lease-versus-buy comparison include?
Lease cost is the down payment plus monthly lease payments over the entered period. Buy cost includes the buying down payment, loan payments made during that period, the remaining loan balance, and subtracts the vehicle’s modeled depreciated value. Either option can be cheaper under different inputs. The model omits taxes, insurance, maintenance, mileage charges and lease-end fees, so its verdict is a simplified cost comparison.