Car Lease vs. Buy Calculator (2026)
Compare the financial costs of leasing versus financing a vehicle purchase over identical time horizons.
United States Calculator
Adjust Your Inputs
Move the sliders or type exact numbers. Results update instantly.
Instant Estimate
Your Results
Purchase Monthly Payment
$822
Based on your selected lease vs buy assumptions. Try different sliders to compare scenarios.
Total Financing Cost
$49,307
Total Lease Payments
$17,280
Estimated Vehicle Equity
$18,636
These are planning estimates, not tax, legal or investment advice. Country rules, lender policies and tax rates can change.
How to Use the Lease vs Buy
Enter vehicle purchase price & loan rate
Input vehicle MSRP/selling price and current auto loan APR.
Specify loan financing term
Select purchase loan term (typically 60 months).
Enter lease payment & term length
Input lease monthly payment and 36-month lease duration.
Formula & Calculation Methodology
Net Cost Comparison = Financing Payments - Residual Equity vs. Lease PaymentsThis calculator uses standard United States financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.
Calculation Examples & Scenarios
$42,000 SUV Comparison
Buy: $42,000 loan at 6.5% for 60 mos ($822/mo). Lease: $480/mo for 36 mos.
Key Benefits
- Compare total out-of-pocket costs and long-term equity side-by-side
- Understand the monthly cash flow vs. asset ownership trade-off
- Avoid costly lease mileage penalties and unexpected depreciation
Common Use Cases
- Deciding on a new car acquisition at an auto dealership
- Business owners evaluating vehicle tax write-offs
- Drivers who want a new car every 3 years vs. long-term owners
Leasing vs. Buying: Financial Realities
Leasing is essentially paying for a vehicle’s depreciation during the 36 months you drive it, plus interest (money factor). Once the lease ends, you return the car and own zero equity. Buying requires higher monthly payments initially, but allows you to own the asset outright once the loan is paid off.
Frequently Asked Questions
Buying and holding a car for 7 to 10+ years is mathematically cheaper because once the loan is paid off, you enjoy years of payment-free ownership and residual equity.
Leasing makes sense if you prefer driving a new car under warranty every 3 years, drive less than 12,000 miles annually, or can write off lease payments as a business expense.
The money factor is the lease APR expressed as a decimal. Multiply the money factor by 2,400 to find the equivalent annual interest rate percentage.
Yes. You can negotiate the capitalized cost (vehicle purchase price), money factor, and dealer fees just like when buying a vehicle.
Leases often incur acquisition fees ($600–$1,000), disposition fees ($300–$500 upon return), and potential excess mileage fees ($0.15–$0.25/mile) and wear-and-tear charges.
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