Lease vs. Buy Calculator

Compare the true cost of leasing vs. financing. See which option saves you money over the specific term.

🚗 Vehicle Details

Negotiated Price (Cap Cost):

Down Payment / Trade-In:

Sales Tax Rate:

Term (Months):

🏦 Loan & Lease Terms

Buying (Loan)

Interest Rate (APR):

Leasing

Money Factor (e.g. 0.0025):

Equals ~6.0% APR

Residual Value (%):

Car value at end of lease.

Lease vs. Buy: The Core Difference

When you buy, you pay for the entire value of the car (plus interest). At the end, you own an asset that you can sell.

When you lease, you only pay for the depreciation (usage) of the car during the term, plus a "rent charge" (Money Factor). At the end, you own nothing.

How Net Cost is Calculated

Buy Net Cost: (Down Payment + Monthly Payments × Months) - Resale Value of Car.
Lease Net Cost: (Down Payment + Monthly Payments × Months).

Usually, if you plan to keep the car for more than 5-6 years, buying is cheaper. If you change cars every 3 years, leasing might be competitive depending on manufacturer incentives.