Lease vs Buy Car Calculator
Compare the real cost of leasing versus buying a car over the same time period. Factor in payments, taxes, fees, mileage penalties, insurance differences, and resale value.
Lease scenario
Enter the terms of the lease you are considering.
Buy scenario
Compare the same ownership period against financing and resale.
Shared assumptions
Apply taxes and insurance adjustments to both options.
Verdict over 36 months
Buying costs less
Estimated savings
$5,132
Total lease cost
$21,571
Total buy cost
$16,439
Lease monthly cost
$599
Buy monthly cost
$457
Residual value advantage
$9,157
Equity left after selling and paying off the remaining loan balance.
Estimated buy payment
$572
Based on the full 60-month loan term.
Mileage overage cost
$1,500
6,000 excess miles at 0.25 per mile.
Buying includes sales tax of $2,240 and subtracts your projected resale equity. Leasing includes taxes, upfront fees, mileage overage, and the insurance difference across the same period.
How to Use
- Enter the lease offer details, including monthly payment, lease term, upfront fees, and mileage limits.
- Add your expected annual driving mileage so the calculator can estimate any excess mileage charges.
- Enter the vehicle purchase price, down payment, APR, loan term, and projected resale value after the same period.
- Add sales tax and any monthly insurance difference, then review the total cost, monthly cost, and savings verdict.
Frequently Asked Questions
Is leasing a car ever cheaper than buying?
Yes. Leasing can cost less over a short ownership window when lease incentives are strong, resale values are uncertain, or you want lower monthly cash flow. Buying often wins if the vehicle retains value well or you keep it longer.
What costs matter most when comparing lease vs buy?
The biggest factors are monthly payments, upfront cash, taxes and fees, mileage penalties, loan interest, and the car's resale value. A fair comparison should also use the same time period for both scenarios.
Why does resale value make buying look better?
When you buy, you still own an asset at the end of the comparison period. Selling or trading in the vehicle can offset a large portion of what you paid, which reduces the true net cost of ownership.
How accurate is this lease versus buy calculator?
It gives a strong planning estimate based on the inputs you provide. Real-world results can vary because of dealer incentives, disposition fees, registration costs, maintenance, and the actual resale price you receive.