🔁 Lease vs Buy Calculator

Compare the total costs of leasing versus buying a car to make the best financial decision
🔑 Car Financing Options
📋 Lease Details
Your monthly lease payment
Length of the lease
Down payment + fees
Residual value of the car
🏷️ Buy Details
Total price of the car
Amount paid upfront
Annual loan rate
Loan repayment period
Expected value after the same period

📊 Lease vs Buy Comparison

Enter your details to see the recommendation.
Lease Scenario
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Buy Scenario
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Total Lease Payments —
Total Upfront Costs —
Total Cost of Lease —
Car Value at Lease-End —
Loan Amount —
Monthly Loan Payment —
Total Interest Paid —
Total Cost of Ownership —
Comparison
Metric Lease Buy Difference
Monthly Payment — — —
Total Cost — — —
Car Value at End — — —
Net Cost — — —

📅 Amortization Schedule (Buy)

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Enter your details and click "Compare" to see the amortization schedule

🧮 Understanding Lease vs Buy Decisions

Choosing between leasing and buying a car involves evaluating both financial and lifestyle factors. This calculator helps you compare the total costs of each option.

M = P × (r(1+r)^n) / ((1+r)^n − 1)

Loan Payment: Where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments.

📋 When Leasing Makes Sense • Drive a new car every few years
• Lower monthly payments
• No major repair costs (under warranty)
• Average mileage (within lease limits)
• Predictable costs, no resale risk
🏷️ When Buying Makes Sense • Keep the car for many years
• Drive more than average mileage
• Build equity in an asset
• No restrictions on modifications
• Freedom to sell at any time

Key Factors to Consider:

  • Mileage: Leases have strict mileage limits with expensive overage fees
  • Wear and Tear: Leases require returning the car in good condition
  • Equity: Buying builds equity; leasing builds no ownership
  • Flexibility: Buying offers more flexibility; leases have early termination fees
  • Long-term Cost: Buying typically costs less over 5+ years

This calculator helps you visualize the financial implications of both options and make an informed decision that aligns with your financial goals and lifestyle preferences.

📝 How to Use This Calculator

  1. Select your currency from the dropdown at the top so all results display in the correct format.
  2. Enter your lease details — monthly lease payment, lease term, upfront costs (down payment plus fees), and the expected car value at the end of the lease.
  3. Enter your buy details — car purchase price, down payment, loan interest rate, loan term, and the expected resale value at the end of the same period.
  4. Click "Compare" to instantly see a side-by-side breakdown of total lease cost vs. total cost of ownership, along with a clear recommendation on which option saves you more.
  5. Review the Comparison table to see the exact differences in monthly payment, total cost, ending value, and net cost between leasing and buying.
  6. Scroll down to the Amortization Schedule (Buy) and switch between Year and Month view to see how the loan balance and interest paid change over time if you buy.
  7. Click "Reset" at any time to clear all fields and start a new comparison.

❓ Frequently Asked Questions

1. How does the calculator decide whether leasing or buying is better?
It compares the total net cost of each option — total lease payments plus upfront costs for leasing, versus total loan payments plus down payment minus resale value for buying — and recommends whichever option costs less overall.
2. Why doesn't leasing build any equity in the comparison?
With a lease, you don't own the car, so there's no resale or trade-in value to offset your costs at the end of the term — the net cost of leasing is simply what you paid in.
3. What is "residual value" and why does it matter for leasing?
Residual value is the car's estimated worth at the end of the lease, set by the leasing company. It affects your monthly payment, since you're essentially paying for the vehicle's depreciation over the lease term rather than its full price.
4. What's the difference between the Year and Month views in the amortization schedule?
The Month view shows a detailed month-by-month breakdown of the buy loan's principal, interest, and remaining balance. The Year view groups those same figures into annual totals, making long-term trends easier to see at a glance.
5. Are the results from this calculator guaranteed outcomes?
No. This tool provides estimates for planning purposes only. Actual lease terms, loan rates, and resale values depend on the dealer, lender, and market conditions, so always confirm final numbers before making a decision.