Car Lease vs Buy Calculator
Compare the full cost of leasing vs buying a vehicle over your chosen time period.
Vehicle & Terms
Lease Terms
Buy/Loan Terms
Buying Wins over 5 years
Save $9,464
by buying
Lease Cost
Buy Cost (Net)
Year-by-Year Comparison
| Year | Lease Total | Buy Net | Lease Advantage |
|---|---|---|---|
| Year 1 | $7,644 | $-9,236 | Buy saves $16,880 |
| Year 2 | $15,288 | $4,748 | Buy saves $10,540 |
| Year 3 | $22,932 | $17,972 | Buy saves $4,960 |
| Year 4 | $33,576 | $30,816 | Buy saves $2,760 |
| Year 5 | $41,220 | $43,660 | Lease saves $2,440 |
Buying breaks even at year 1.
This comparison assumes one vehicle. Lease costs assume new leases at the end of each term. Actual costs vary.
Lease vs Buy — The Real Math
Monthly payments alone don't tell the full story. Leasing has lower monthly payments, but you never build equity. Buying costs more upfront and monthly, but after paying off the loan, you own an asset. The crossover point — where buying becomes cheaper than continuous leasing — typically occurs around year 4-5 for most vehicles.
Cost Comparison: $38,000 Vehicle
| Factor | Lease (36-month) | Buy (60-month loan) |
|---|---|---|
| Monthly Payment | ~$380–$450 | ~$680–$750 |
| Down Payment | $2,000–$3,000 | $3,000–$5,000 |
| 3-Year Total Cost | $17,000–$20,000 | $27,000–$30,000 |
| 5-Year Total Cost | $34,000–$40,000 | $40,000–$45,000 |
| 5-Year Net Cost (after resale) | $34,000–$40,000 | $21,000–$27,000 |
| Own the Car? | No | Yes |
When Leasing Makes More Sense
Leasing works best if you want a new car every 2-3 years, drive fewer than 12,000 miles/year, prefer lower monthly payments, need the car for business (may be tax-deductible), or don't want to deal with selling/trading later. It's also attractive for EVs because of rapid technology changes and available tax credits through leasing.
Frequently Asked Questions
What are hidden costs of leasing?
Beyond monthly payments: disposition fees ($300-$500 at lease end), excess mileage charges ($0.15-$0.30 per mile over your limit), wear-and-tear charges for damage beyond "normal use," and early termination fees (often the remaining balance). These can add $1,000-$5,000+ to your total cost.
Can I negotiate a lease like a purchase?
Yes — and you should. The two key numbers: the capitalized cost (negotiate this down just like a purchase price) and the money factor (the interest rate — lower is better). Also negotiate the residual value and any dealer add-ons.
See also: Auto Loan Calculator and Auto Insurance Estimator.