Car Lease vs Buy Calculator
Created by: James Porter
Last updated:
Compare lease payments with buying cash flows over the same period, including outstanding loan payoff and your expected resale value.
Car Lease vs Buy Calculator
AutomobileCompare entered payments and resale proceeds over the lease term, including loan payoff
Resale value must be the expected sale price at the end of the lease term. Unentered fees, taxes and running costs are excluded.
Compare leasing and buying over the same period
Enter payments and a resale value at the end of the lease term. This comparison covers acquisition cash flows and sale proceeds, including repayment of any outstanding loan.
Formula
Lease cost = lease down payment + monthly payment × lease months. Net buy cost = buy down payment + loan payments made during the comparison period + remaining loan balance − resale value.
Zero-interest loans and cash purchases are supported. Payments stop when the loan is paid off. A single resale assumption does not establish a future break-even date.
Example
A $30,000 vehicle with $5,000 down, 6.5% APR and a 60-month loan has a payment of $489.15. After 36 months the loan balance is $10,980.81. With $18,000 resale value, net buy cost is $15,590.34. A $350 monthly lease plus $2,500 down costs $15,100: leasing costs $490.34 less under these assumptions.
Costs to check separately
This is not a complete ownership-cost estimate. Taxes and fees outside entered prices/payments, insurance, maintenance, excess-mileage charges, lease disposition fees, early termination and opportunity cost are excluded. Use the lender's actual payoff quote for a real sale.