Trying to decide whether to lease or buy your next vehicle? This calculator compares your estimated total cost under both options over the same time period so you can make a more confident decision.
How this lease vs buy car calculator works
This tool compares net out-of-pocket cost across a shared timeline. For buying, it includes your down payment, financed payments, monthly operating costs, and then subtracts your net equity (resale value minus remaining loan balance). For leasing, it includes monthly payments, due-at-signing costs, disposition fees, mileage overage, and monthly operating costs.
What “better” means in this model
The calculator defines “better” as the option with the lower estimated total cost for your chosen time horizon. It does not include non-financial preferences such as wanting a new car every few years, avoiding repair uncertainty, or emotional value from owning a vehicle long-term.
Inputs that matter most
- Resale value estimate: this heavily impacts buying outcomes.
- Lease monthly payment and due at signing: small differences compound quickly.
- Mileage assumptions: driving above lease limits can erase lease savings.
- Loan APR and term: higher rates increase buy-side total cost.
- Ownership horizon: buying often looks better over longer periods.
When leasing may make sense
- You prefer a newer vehicle every 2–3 years.
- You drive close to or below mileage limits.
- You prioritize predictable short-term costs.
- You can secure strong lease incentives.
When buying may make sense
- You plan to keep the car for many years.
- You drive more than typical lease limits.
- You want to build ownership equity.
- You can get competitive financing and reasonable depreciation.
Tips for using the calculator effectively
1) Run a base case and two alternates
Try a conservative resale value and a pessimistic mileage scenario. If your conclusion stays the same across all runs, your decision is probably robust.
2) Compare similar trim levels
Make sure the lease quote and purchase price represent the same or very similar vehicles. A mismatch can skew results.
3) Don’t ignore insurance and maintenance differences
Some leases require higher coverage levels, while older owned cars may need more maintenance. Enter realistic monthly estimates for each side.
Bottom line
Leasing is usually a short-term flexibility play; buying is often a long-term cost play. Use this calculator to make the tradeoff visible in dollars so your decision matches your lifestyle and budget.