Lease vs Buy Calculator

Compare the true cost of leasing a car against buying it with a loan, including the resale value you keep. Enter your numbers and press Calculate.

Written by TopicDrill Editorial Team·Updated June 2026

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Total cost over the term

How the lease vs buy comparison works

Leasing and buying feel similar month to month, but the long-term math is different. A lease is pure spending: you pay for the use of the car and hand it back. Buying mixes spending with ownership, because part of every payment builds equity in an asset you can later sell.

To compare fairly, this tool totals your lease costs over the term and stacks them against the net cost of buying. Net cost is what you pay in, minus the resale value still in your driveway at the end. The bar chart shows the two side by side.

A quick example

Lease a $35,000 car for three years at $399 a month with $2,000 down and you spend about $16,360. Buy the same car with $5,000 down and a 5 year loan at 6.5 percent, and after three years you have paid roughly $24,600, but the car is still worth around $20,000, so your net cost is closer to $4,600.

Things to keep in mind

Resale values are estimates and depend on mileage and condition. Leases also carry mileage limits and wear charges. For broader guidance on auto financing, the Consumer Financial Protection Bureau is a reliable source. Compare scenarios with our other free calculators.

Frequently asked questions

How does this calculator compare leasing and buying?

It adds up everything you pay to lease over your chosen term, then compares that to the net cost of buying. The buy figure is your down payment plus loan payments made during the term, minus the resale value of the car you still own at the end.

Why subtract the resale value when buying?

When you buy, you own an asset. At the end of the term the car still has value you could sell or keep driving. A lease leaves you with nothing, so a fair comparison credits the buyer for the remaining resale value.

Is leasing or buying usually cheaper?

Over a single short term, leasing often has lower monthly payments. Over the long run, buying and keeping a car past the loan payoff is usually cheaper per year because you stop making payments while still driving the vehicle.

What costs does this not include?

It focuses on payments and resale value. Insurance, maintenance, mileage overage fees on a lease, taxes and registration vary widely and are not modeled here. Factor those in separately before making a decision.

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