Quick calculator: compare the true cost of leasing versus buying over your chosen timeline. This version uses the same assumptions people often discuss on Reddit: total cash out, mileage penalties, and resale equity.
Buy Inputs
Lease Inputs
Shared Assumption
Assumes you sell the purchased car at the end of the period and count net equity (resale value minus any remaining loan balance).
How this lease vs buy car calculator works (Reddit-style)
Most Reddit discussions on car decisions eventually land on one point: you need a full-cost comparison, not just a monthly payment comparison. A lease may look cheaper each month, but once you include down payment, lease fees, mileage penalties, and repeated lease cycles, the picture can change. On the buy side, financing costs matter, but so does resale value and the equity you keep.
This calculator is designed for that exact conversation. It compares total ownership cost over a set time period using practical, transparent assumptions.
What gets included in each side
Buying includes
- Purchase price plus sales tax
- Down payment and financed loan payments
- Insurance and maintenance estimates
- Credit for your ending equity (resale value minus remaining loan)
Leasing includes
- Monthly lease payment for the full analysis period
- Due-at-signing amount each time a new lease starts
- Mileage overage cost if you drive more than allowed
- Disposition fees for completed lease terms
- Insurance and maintenance estimates
Why Reddit users disagree so often
People compare different scenarios without realizing it. One person says leasing is terrible because they keep cars for 10 years. Another says leasing is better because they replace every 3 years and can write off part of the payment for business use. Both can be right in their own context.
To make your own decision, keep the timeline and usage consistent:
- Use your real annual mileage, not the dealer’s ideal case.
- Use realistic resale value, not optimistic guesses.
- Compare equal time windows (for example, 5 years vs 5 years).
- Include fees that are easy to ignore: disposition, acquisition, and excess wear assumptions.
When buying tends to win
- You keep cars for a long time (7–12 years).
- You drive above normal mileage limits.
- You want to build equity and avoid continuous payments.
- You can manage maintenance as the vehicle ages.
When leasing can make sense
- You strongly prefer a new car every 2–4 years.
- You stay within mileage limits.
- You value warranty coverage and predictable short-term costs.
- You can get a heavily subsidized lease deal.
Common mistakes this calculator helps avoid
1) Comparing only monthly payment
A $479 lease can look far cheaper than a $700 buy payment. But if you pay $3,500 at signing every 36 months, the real monthly cost rises fast.
2) Ignoring resale equity
Buying may feel expensive month to month, but the car remains an asset. At the end of your comparison period, that asset has value.
3) Underestimating mileage costs
If you drive even 2,000 miles above allowance annually, overage charges can materially change lease economics.
Bottom line
There is no universal winner. If your priority is lowest long-run cost, buying often wins when you keep the car longer. If your priority is short-cycle upgrades and convenience, leasing may be worth the premium. Run your own numbers with realistic assumptions and decide based on your financial goals—not on a generic internet hot take.