Lease vs Buy Calculator

Compare the total cost of leasing against buying a car over the same period, including resale value.

Your details

Negotiated vehicle price

Comparison period

yrs

Lease

Lease due at signing

Residual value

% of MSRP

Money factor

Multiply by 2400 to get the equivalent APR

Acquisition & disposition fees

Buy

Purchase down payment

Purchase APR

Purchase loan term

Annual depreciation

Both

Sales tax rate

This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works

Buying costs less over 3 years

$68

Lease $26,372 vs buy $26,303 net of resale

Save these results

Includes your inputs, the full breakdown, and every row of the table.

Monthly lease payment

$613.10

Equivalent APR 6.00%

Monthly loan payment

$808.13

Car value at end

$25,793

Yours if you buy, the bank's if you lease

Equity when buying

$7,789

$18,004 still owed

Breakdown

Lease — due at signing: $3,000
Lease — 36 payments: $22,072
Lease — acquisition & disposition fees: $1,300
Lease — total cost: $26,372
Buy — down payment: $5,000
Buy — payments made: $29,093
Buy — remaining loan balance: $18,004
Buy — resale value: - $25,793
Buy — net cost: $26,303

What this means

Money factor 0.00250 equals an APR of about 6.00%. Multiply any money factor by 2,400 to compare it against a loan rate.
Leasing wins on cash flow and loses on ownership. The comparison flips decisively toward buying the longer you keep the car past the loan payoff, when the payment stops but the car keeps working.
Mileage overage charges of 15-25 cents per mile are not modelled here and can add thousands to a lease if you drive more than the allowance.

How the lease vs buy calculation works

A lease payment has two parts: a depreciation charge covering the value the car loses during the term, and a finance charge based on the money factor. The residual value the manufacturer sets determines the depreciation portion, which is why the same car can lease well or badly depending purely on subsidy.

Buying costs more up front and less over time. Once the loan is paid, the payment disappears while the car continues to provide transportation — that is where purchasing wins. A three-year comparison flatters leasing; a ten-year comparison rarely does.

Frequently asked questions

What is a money factor?

The lease equivalent of an interest rate, expressed as a small decimal. Multiply by 2,400 to convert to an APR — a money factor of 0.00250 is 6% APR.

Is it ever smart to put money down on a lease?

Generally no. A capitalized cost reduction lowers the payment but is not refunded if the car is totalled or stolen early in the term. Insurance pays the leasing company, not you.

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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.