lease vs buy car calculator - Aaron Graves, PhDude Replica

Use this calculator to compare the total cost of leasing vs buying a car over your chosen time horizon.

Buy Inputs

Car purchase price ($)

Down payment ($)

Sales tax rate on purchase (%)

Registration & dealer fees ($)

Loan APR (%)

Loan term (months)

Expected resale value at end ($)

Annual maintenance/repairs ($)

Annual insurance ($)

Lease Inputs

Monthly lease payment ($)

Lease term (months)

Tax rate on lease payments (%)

Due at signing/down payment ($)

Acquisition fee per lease ($)

Disposition fee at turn-in ($)

Allowed miles per year

Expected miles per year

Over-mileage cost per mile ($)

Annual maintenance ($)

Annual insurance ($)

Comparison period (years)

Enter your values and click Calculate Lease vs Buy to see your total cost comparison.

How this lease vs buy car calculator works

This tool estimates your total out-of-pocket cost for two strategies over the same period: leasing continuously, or buying with financing and selling later. Instead of focusing only on monthly payment, it brings hidden costs into the same view.

Buying includes down payment, taxes/fees, loan payments, remaining loan payoff, maintenance, insurance, and then subtracts resale value.
Leasing includes due-at-signing, monthly payments with tax, acquisition/disposition fees, maintenance, insurance, and mileage overage penalties.

Why monthly payment alone is misleading

A lower monthly lease payment can feel like a win, but total ownership cost is driven by the full cash flow picture. The same is true for buying: a higher payment can still be better if your vehicle retains value and your driving habits are heavy.

Costs people commonly forget

Sales tax treatment (purchase tax vs monthly lease tax)
Mileage penalties at lease end
Disposition and acquisition fees
Depreciation captured through resale value when buying
Insurance differences between leased and owned vehicles

When leasing can make more sense

Leasing may be attractive if you like changing cars frequently, value warranty coverage, and drive under mileage limits. It can also preserve cash flow if you avoid high down payments.

You want a new vehicle every 2–3 years.
You drive predictable, lower annual miles.
You prioritize lower maintenance risk.

When buying can make more sense

Buying is often stronger over long time horizons, especially if you keep the car after loan payoff. Once the loan ends, your monthly cost can drop dramatically compared with continually rolling into new leases.

You drive a lot and would exceed lease mileage.
You keep cars for many years.
You want flexibility to modify or sell anytime.

Practical tips before you decide

1) Keep down payments modest

Large cash down payments can mask true cost. If a leased car is totaled early, you may not recover all upfront money.

2) Compare equal vehicles

Run the calculator using the same trim level and realistic maintenance assumptions. Comparing a base lease to a premium purchase can distort results.

3) Use your real mileage

Be honest about annual miles. Underestimating mileage can make leasing look cheaper than it will be in reality.

4) Re-run with multiple scenarios

Test a best-case and worst-case resale value, plus a higher insurance estimate. Small assumptions can change the winner.

Bottom line

The better option is the one with lower total cost for your life, not just the nicer monthly payment. Use this calculator as a decision framework, then confirm deal-specific details from your lender, dealer, and lease contract.