Car Lease vs Buy Calculator
Leasing looks cheaper month to month, but buying builds equity. Enter both deals to see the total cost over the years you’ll keep the car.
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Learn moreThe real trade-off
A lease is essentially renting: low payments, but you own nothing and pay again every few years. Buying costs more up front, but once the loan is paid the car keeps its resale value as equity. The longer you keep a purchased car, the more buying wins.
How it’s calculated & sources
Buying: we amortize the price minus your down payment at the loan APR, total the payments over the period, and subtract the resale value. Leasing: we add the due-at-signing amount for each lease cycle (assumed 36 months) plus the monthly payments across the same period.
Benchmark: total cost of ownership over your hold period. Edmunds and Consumer Reports both find buying-and-keeping is cheapest over the long run.
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
A $35,000 car kept 6 years — financed at 7% over 60 months with $3,000 down and a $15,000 resale — usually costs less than leasing the same car (two lease cycles at $450/month), which never builds equity.
Frequently asked questions
Why might leasing still make sense?
If you want a new car every 2–3 years, drive low miles, or value the warranty and predictable payments, leasing’s convenience can be worth the premium.
Does this include insurance and maintenance?
No — those are similar across both, except leases require gap and higher coverage. Add them if they differ for you.