Lease vs. Buy Calculator
Should you lease your next automobile or finance it? Find out with this calculator!
How the lease vs. buy calculator works
It tallies the net cost of buying over your comparison period — down payment plus loan payments, minus the equity you keep when you could sell the car — and sets it against the total of the lease payments, which leave you owning nothing.
Worked example: with vehicle price of $35,000, down payment (to buy) of $4,000 and loan rate (to buy) of 7.00%, the lease vs buy calculator shows cheaper over 3 years of Leasing.
- Buy — net cost
- $20,558
- Lease — total cost
- $15,120
- Equity if you buy
- $5,540
- Buy payment
- $613.84
The formula
Buy net cost = down + loan payments over the period − (resale value − remaining loan balance). Lease cost = monthly lease × months.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the lease vs. buy calculator
Is it cheaper to lease or buy a car?
Buying usually costs less over time because you build equity, while leasing means perpetual payments with nothing to show. The calculator compares the net cost over your chosen period.
When does leasing make sense?
If you always want a new car every few years, drive within the mileage limits, and value lower payments and predictable costs over ownership and equity.
What is the equity I keep when buying?
The car's resale value minus any loan balance left. That equity offsets the higher payments of buying, which is why the calculator subtracts it from the buy cost.
Is the Lease vs. Buy Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.