Car Lease vs. Buy Calculator
Compare the true cost of leasing a car versus financing and owning it.
Open the Interactive CalculatorHow It's Calculated
True Cost of Buying = Down Payment + Payments Made − Resale Value + Any Remaining Loan Balance. True Cost of Leasing = Lease Down Payment + (Monthly Lease Payment × Months). Buying leaves you with an asset (resale value); leasing does not.
Example
Example: a $35,000 car over a 36-month comparison window — leasing costs about $18,200 total with nothing to show for it afterward. Financing the same car with a 60-month loan and $3,000 down costs about $23,850 net of the roughly $15,750 resale value, because you still owe about $14,000 on the loan at the 36-month mark — making leasing the cheaper choice here by about $5,650. Matching the loan term to the comparison period (or keeping the car past the loan term) usually swings this back in buying's favor.
Frequently Asked Questions
Why does buying look worse when my loan term is longer than the comparison period?
Because you still owe a big chunk of principal at the cutoff — that remaining balance counts against you. For a fairer comparison, either match the loan term to the comparison period, or extend the comparison period to when you'd actually sell or keep driving the car loan-free.
Does this include maintenance or insurance costs?
No — it compares only financing and ownership costs. Leased cars are usually newer and under warranty, which can mean lower maintenance costs not reflected here.