Lease vs. Buy Car Calculator

Over a single lease term, leasing often has lower monthly payments, but buying is usually cheaper in the long run because you keep a car with resale value while a lease leaves you with nothing. This calculator nets out that resale value, so it compares true cost — not just the monthly payment.

Leasing can fit if you want a new car every few years, drive modest miles (leases cap mileage), value lower payments and predictable costs, or use the car for business. You're essentially renting the fastest-depreciating years — convenient, but you never build equity in the vehicle.

Because after the loan is paid off you own an asset and can drive it for years with no payment, spreading the cost over a long life. Leasing means a payment forever, since you return the car and lease another. The longer you keep a purchased car, the bigger buying's advantage grows.

It compares payments and resale value. It doesn't model lease mileage penalties, wear-and-tear charges, gap insurance, or the time value of money on your down payments — all of which can shift the result. Use it as a first-pass comparison, then read the fine print of any lease.