Loans
Lease vs. Buy Car Calculator
Leasing looks cheaper each month, but buying leaves you with a car worth something at the end. Enter the terms of each to compare the true cost over the same period — leasing's payments versus buying's payments minus the resale value you keep.
Tested against worked examplesHow we verify
What you could sell the car for at the end of the period — money you keep.
Buying is cheaper by: $5,800
Buying is cheaper by
$5,800
Net cost difference over the whole period.
- Lease — total cost
- $17,400
- Buy — net cost
- $11,600
- Resale value kept (buying)
- $15,000
Payments minus the resale value you keep.
Compare scenariosTry three values of one input
| Comparison period | |||
|---|---|---|---|
| Buying is cheaper by | $10,600 | $5,800−$4,800 | $3,800−$6,800 |
| Lease — total cost | $7,800 | $17,400+$9,600 | $36,600+$28,800 |
| Buy — net cost | -$2,800 | $11,600+$14,400 | $40,400+$43,200 |
Every other input stays at the value you set above — currently 36 mo for comparison period. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
Lease total cost = amount due at signing + monthly lease payment × months. Buy net cost = down payment + monthly loan payment × months − the car's resale value at the end. The cheaper option is the one with the lower net cost.
A straightforward cash comparison over one period — it doesn't discount future payments or include mileage/wear penalties, insurance differences, or maintenance. Enter realistic resale and payment figures; the resale value is the biggest swing factor.
What this assumes
- The comparison runs over the lease term. Buying usually wins over longer horizons, because the expensive depreciation years are followed by years with no payment.
- Mileage stays within the lease allowance; exceeding it is charged per mile at return.
- The car's value at the end of the buying scenario is the figure you enter, which is a forecast rather than a fact.
What changes this number
- How long you keep the car
- The single decisive input. Leasing suits replacing a car every few years; buying rewards keeping it.
- Annual mileage
- Lease allowances are the constraint that turns a good lease into an expensive one at return.
- Residual value
- Set by the lessor. A high residual makes leasing cheap and buying-out expensive.
A worked example
Take the 36-mo lease vs 5-yr buy scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Comparison period
- 36 months
- Lease — monthly payment
- $400
- Buy — monthly loan payment
- $600
- Buy — car's value at the end
- $15,000
What it returns
- Buying is cheaper by
- $5,800
- Lease — total cost
- $17,400
- Buy — net cost
- $11,600
- Resale value kept (buying)
- $15,000
Try an example
Frequently asked questions
Is it cheaper to lease or buy a car?
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.
When does leasing make sense?
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.
Why is buying usually cheaper over time?
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.
What costs does this leave out?
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.
This calculator helps answer
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.