Gypes

Vehicle decision

Car lease vs. buy calculator

Compare both offers over the same number of months, including purchase equity and lease-end charges.

Have the purchase buyer’s order and lease quote nearby. Gray placeholders are examples only and are not counted. You will see one short step at a time, and optional costs start at zero.

1Enter the purchase price and cash down

Use the complete out-the-door price and cash or positive trade equity actually applied to the purchase.

2Enter the purchase financing

Copy the APR and complete term from the same written purchase offer—not the monthly payment alone.

3Estimate the purchase value at comparison end

At the end of the lease-length horizon, a buyer still owns a vehicle but may also owe loan principal. Estimate the vehicle’s resale value and differing costs.

4Enter the lease quote

Use the exact term, non-refundable signing amount, and tax-inclusive payment from one written quote.

5Add fixed lease-end differences

Copy the required turn-in fee and add only lease-path costs not already counted in the quote or mileage step.

6Check the mileage allowance

Compare the contractual allowance with recent driving and copy the exact excess-mile charge.

Compare written offers over the same horizon

A lease payment and a purchase loan payment do not buy the same thing. A purchase can leave you with a vehicle and loan balance; a lease normally ends with the vehicle being returned. This calculator compares both paths at the end of the entered lease term. Use the same vehicle, equipment, mileage expectation, and time horizon, and enter the purchase offer’s complete out-the-door price rather than its advertised price.

The Federal Trade Commission’s car financing and leasing guidance recommends getting the out-the-door price in writing and comparing total cost rather than focusing only on the monthly payment. The Consumer Financial Protection Bureau’s lease-versus-buy overview explains the different ownership, mileage, wear, and end-of-lease consequences.

How the purchase cost is calculated

The purchase amount financed is the out-the-door price minus cash down or net trade equity. The calculator amortizes that principal at the entered APR and term, then finds the loan balance at the lease-end comparison date. Purchase-path cost equals cash down plus loan payments made through that date plus entered differing costs, minus the vehicle’s net equity. Net equity is estimated vehicle value minus selling or trade costs and the remaining loan balance.

A cash purchase can be modeled by entering the full out-the-door price as the purchase cash down amount. Keep the APR and loan term valid; the calculator will show a zero financed balance and no loan payment.

Resale value is usually the pivotal assumption

Future vehicle value is uncertain and can dominate the result. Test at least a low, middle, and high resale estimate. The break-even vehicle value shows the value at which the modeled purchase and lease costs are equal. Buying is cheaper above that value and leasing is cheaper below it, assuming every other entry stays unchanged.

How the lease cost is calculated

Lease-path cost includes the non-refundable amount due at signing, every monthly payment during the entered lease term, disposition or turn-in fees, estimated excess-mile charges, and other differing costs. Allowed and expected miles are prorated by the lease term, so a 30-month lease does not silently receive three full years of mileage.

Only enter the part of the amount due at signing that is a real cost of the lease. Refundable deposits and first-month payments already included in the monthly-payment count should not be counted twice. A large capitalized-cost reduction can make the advertised monthly payment look smaller without making the total commitment proportionally cheaper.

Mileage and condition can change the answer

Lease contracts commonly limit mileage and may charge for excess wear, damage, missing equipment, or early termination. Enter the contract’s mileage allowance and excess-mile rate, then use a realistic driving estimate. If you know you will purchase additional miles in advance, use that written cost instead of an assumed turn-in rate. The result cannot predict an inspection or contract-specific waiver.

Include costs only when the paths differ

Fuel, parking, insurance, registration, maintenance, repairs, tires, taxes, and opportunity cost can matter, but identical costs cancel out in a side-by-side comparison. Put only the expected difference between the two paths in each “other differing costs” field. For example, enter the extra purchase maintenance expected after the lease warranty period, or a lease acquisition fee not already included in the amount due at signing.

What this comparison excludes

The model assumes end-of-month fixed loan payments and a vehicle return at lease end. It does not model a lease-end purchase option, money factor, residual disclosure, security-deposit refund, early termination, tax rules, investment returns on cash, insurance differences, or financing after the comparison horizon. Review the contract and a current written offer. The CFPB also provides an auto-loan comparison checklist covering amount financed, APR, term, payment, and total cost.

Use the auto loan calculator to build a purchase loan from price, tax, trade equity, and fees. Use the driving cost calculator for fuel and per-mile operating expenses.

This calculator provides general educational arithmetic, not financial, lending, tax, insurance, or legal advice. It is not a lease or loan offer. Contract definitions, payment timing, taxes, fees, mileage rules, vehicle condition, and actual resale value may differ.