Lease vs Buy Calculator

Compare leasing with buying and financing the same car over the lease term.

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Enter a money factor like 0.00125, or an APR like 3 (it’s converted: APR ÷ 2,400).
Amounts in dollars.
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Cheaper option
Lease: net cost
Buy: net cost
Loan payment
Loan balance at end of lease term
Your equity then
Work

Saved Calculations

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How Lease vs Buy Is Compared

Lease net cost = payments + down payment (+ trade-in)
Buy net cost = loan payments over the same months + down (+ trade-in) − (car value − loan balance)

Both are measured over the lease term so they cover the same time.

Worked Example

Tips

Buying usually wins if you keep the car well past the loan, drive a lot, or would pay lease mileage or wear charges. Leasing can win for people who want a new car every few years. This ignores opportunity cost of the down payment and insurance differences.