Car Lease vs Buy Calculator
Compare the total cost of leasing a car with buying it over the same period, including the loan, down payment and what the car is worth at the end.
How the comparison is made
Both options are compared over the lease length. Lease cost is the amount due at signing, the fees and every monthly payment. Buying cost is the down payment plus the loan payments made in that time, plus the loan balance still owed, minus what you could sell the car for. That gives the net cost of owning for the same months.
Insurance, fuel and maintenance are left out because they are similar for both. Remember that leases have mileage limits and wear charges, while buying leaves you with a car you can keep driving for years after the loan ends.
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Check the mileage limit and the charge per extra mile on the lease.
- A car that loses value slowly makes buying look better.
- If you keep cars 8 years or more, buying and driving it long usually costs less.
Learn more
Frequently asked questions
Is leasing cheaper than buying?
Monthly payments are lower, but you own nothing at the end. Over many years, buying and keeping a car is often cheaper.
What resale value should I use?
About 50% to 60% of the price after 3 years is common, but it varies a lot by model.
Does it include insurance and tax?
No, only the lease and loan costs.
What if I buy and keep the car?
The longer you keep it, the lower the cost per year becomes, which this 3-year view does not show.
Money guides for this topic
All guides →The True Cost of Owning a Car
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Read guide →How Loan Interest Really Works
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Read guide →Buying a Home or Car: The Math Before You Sign
How to work out what you can really afford for a home or car, using simple rules and real numbers.
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Open calculator →Results are estimates and not financial advice.