Lease vs Buy Calculator
Compare the total cost of leasing a car against buying it with a loan over the same period.
How it works
Lease cost = down + lease payment × months · Buy cost = down + loan payment × months − resale value
This is a simplified head-to-head over one shared period. Leasing costs the down payment plus every lease payment, and you own nothing at the end. Buying costs the down payment plus loan payments, but you keep the car — so its resale value is credited back. Assumes the purchase is financed over the same term (owned outright at term-end) and leaves out insurance, maintenance and fuel, which are broadly similar for the same car.
Worked example
A $33,000 car with $3,000 down: leasing at $400/month for 36 months costs $17,400. Buying with a loan at 7% runs about $926.34/month; after 36 months you have paid $36,348 but sell the car for $19,800, netting about $16,548 — so buying is roughly $850 cheaper.
Frequently asked questions
Is buying always cheaper than leasing?
Over the long run, keeping a bought car well past the loan usually wins because you stop paying while it still has value. Over a short term the gap narrows and depends heavily on the resale value and the rates offered.
What does this comparison leave out?
Lease mileage limits and wear charges, the flexibility of a shorter commitment, tax treatment, and the fact that a bought car keeps costing you upkeep as it ages. It is a money-only snapshot, not the whole decision.
Why does resale value matter so much?
It is the single biggest swing factor for buying. A car that holds 60% of its value makes buying look great; one that holds 40% shifts the math toward leasing.
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Educational estimate, not financial advice — dealer terms, fees and taxes vary.