Lease vs Buy Car Calculator
Compare the total cost of leasing versus buying a car over the same period, accounting for resale value.
How it works
Lease = down + monthly × months; Buy net = down + loan payments × months − resale value
Leasing is pure cost — you hand the car back. Buying costs the loan and down payment, but you keep an asset worth its resale value, so subtract that. The car you own also has value beyond the term.
Worked example
A $35k car: leasing 36 months at $400 with $2,500 down is $16,900; buying with $5k down at 7% and 55% resale nets around $17,000.
Frequently asked questions
Is buying always better long term?
Usually, because you keep the car past the loan with no payments. Leasing suits those who always want a new car and low upfront cost.
What resale value should I use?
Look up the model’s typical value at your term — many cars retain 50–60% after 3 years.
Related calculators
Educational estimate; lease terms, fees, taxes and mileage limits vary — confirm with the dealer.