Car Lease vs. Buy Calculator (2026)

When financing or purchasing a vehicle, your monthly loan payments build equity until you own 100% of the asset. When leasing, you only finance the anticipated depreciation of the car during the 24 to 36-month term plus interest (the money factor), returning the vehicle at lease end with zero equity.

Purchasing and holding a vehicle for 6 to 10 years is substantially cheaper over time because you eliminate monthly car notes once the loan is paid off. Leasing is advantageous if you want lower monthly payments, drive under 12,000 miles annually, or qualify for Section 179 vehicle business expense deductions.

To convert a lease money factor into an equivalent APR interest rate, multiply the money factor by 2,400. For example, a money factor of 0.0027 equals a 6.48% APR (0.0027 × 2,400 = 6.48%).

Yes. The agreed vehicle purchase price is called the capitalized cost (Cap Cost). Negotiating a lower Cap Cost directly reduces your monthly lease payment just as it would on an auto loan.

Lease agreements typically include an acquisition fee ($595–$995), a disposition fee ($350–$500 upon vehicle return), and potential excess mileage fees ($0.15–$0.25 per mile over your annual allowance).