Compare Car Buying vs Leasing Costs
Use this calculator to estimate total cost over your planned ownership period. Enter your own numbers for financing, insurance, maintenance, and mileage.
Buy Assumptions
Lease Assumptions
Shared Inputs
Assumes you would sell the purchased car at the end of the analysis period. Lease scenario assumes you continue leasing through the full period.
How this auto buy vs lease calculator helps
Most people compare only the monthly payment, but that can be misleading. A lower lease payment may still cost more over time after fees, insurance differences, and excess mileage charges. This auto buy vs lease calculator focuses on total cost so you can make a cleaner decision.
The model compares your expected cash outflows for both paths over the same time horizon. It then highlights which option is less expensive based on your assumptions.
What the calculator includes
- Buying: purchase price, sales tax, down payment, loan interest, insurance, maintenance, and expected resale value.
- Leasing: monthly lease cost, down payment, acquisition fee, disposition fee, mileage penalties, insurance, and maintenance.
- Time alignment: both paths are measured over the same ownership period (for example, 5 years).
Important assumptions to understand
1) Resale value matters a lot
Buying usually looks better if the car holds value well. If resale is lower than expected, owning can become more expensive quickly.
2) Mileage can flip the lease result
If you drive more than your lease allowance, excess-mile charges can erase the apparent savings from a low monthly lease payment.
3) Insurance and maintenance differ by driver and vehicle
Leased vehicles can have stricter insurance requirements, while owned cars can face higher repair costs as they age. Enter realistic local numbers.
When buying tends to be the better choice
- You keep cars for many years.
- You drive above average annual mileage.
- You can make a healthy down payment and secure a competitive APR.
- You want flexibility to modify the vehicle or sell any time.
When leasing tends to be the better choice
- You prefer driving newer cars every few years.
- You drive within mileage limits.
- You value predictable maintenance during warranty periods.
- You prioritize lower upfront cost and lower monthly payment volatility.
How to use this for a smarter decision
Run at least three scenarios: conservative, expected, and worst case. Change mileage, resale value, and interest rate first, since those usually have the biggest impact. This is the easiest way to stress-test your decision before signing paperwork at the dealership.
You can also use this as a negotiation tool: if the lease option is close, ask for a lower money factor or reduced fees; if buying is close, negotiate price and APR first rather than only payment.
Bottom line
The right answer is not universally “buy” or “lease.” It depends on your usage, financing terms, and how long you keep the car. A proper car financing comparison should always look at total cost over your real ownership period, not just the monthly amount on the contract.