HandyCarTools

Lease vs Buy Calculator

Compare the total cost of leasing versus buying over the years you plan to keep the car.

Buy / finance

Lease

Buying is cheaper

by $7,442.71

Total cost to buy
$25,557.29
Total cost to lease
$33,000.00

"Total cost to buy" subtracts the equity you keep (resale value less any loan still owed). Estimate only — excludes taxes, fees and maintenance differences.

How to use this calculator

Set how many years you'll keep the car. Under Buy, enter the price, down payment, interest rate, loan term and an estimated resale value at the end. Under Lease, enter the monthly payment, drive-off amount and lease term. The calculator totals each option and tells you which is cheaper.

Frequently asked questions

Is it cheaper to lease or buy a car?
Buying is usually cheaper over the long run because you keep the car and its resale value, while leasing means lower payments but no ownership. Over a short period and if you always want a new car, leasing can cost less out of pocket. This calculator compares the total cost of each over the years you plan to keep the car.
How does this calculator compare lease vs buy?
For buying it adds your down payment and loan payments, then subtracts the equity you keep (estimated resale value minus any remaining loan). For leasing it adds the drive-off and monthly payments, re-leasing as needed to cover the same period, with no equity at the end.
What is residual or resale value?
It is what the car is worth at the end of your ownership period. When you buy, that value is money back in your pocket (equity). When you lease, it belongs to the leasing company. Enter a realistic estimate — use the Depreciation calculator to gauge it.

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