Lease vs Buy Calculator
Compare the real cost of leasing against financing the same car over the same period.
Is it cheaper to lease or buy a car?
It depends on how long you keep the car. Over 36 months on a $38,000 car, a $420 lease ($2,500 due at signing) costs about $17,620, while buying with $5,000 down at 7.5% nets about $22,600 after resale and the loan still owed — so leasing saves roughly $4,980 over that window.
Your numbers
Lease total cost
$17,620
Buy net cost
$22,600
after resale, minus loan owed
Leasing saves
$4,980
Insight — Leasing usually wins on monthly cash flow; buying usually wins on long-term cost because you keep the car's resale value. If you sell before the loan is paid off, the balance you still owe eats into that equity — which is why buying pays off most when you keep the car well past the loan.
Data behind the defaults
- 7.47%·Editorial estimate· as of 2026-07-17· medium confidence
These defaults are starting points from the sources above — every field is editable, and results are estimates, not quotes. All data sources →
What if Comparison period changes?
| Comparison period | Lease total cost |
|---|---|
| 24 mo | $12,580 |
| 36 mo · now | $17,620 |
| 48 mo | $22,660 |
| 60 mo | $27,700 |
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How this calculator works
The tool puts leasing and buying on the same footing over one comparison period. The lease side is straightforward: monthly payment times the months, plus the cash due at signing. The buy side models a standard fixed 60-month purchase loan: it adds up the payments you make during the comparison window plus your down payment, then subtracts the equity you walk away with. Equity is the car's resale value at the end minus the loan balance you still owe at that point. If you compare before the loan is paid off, that remaining balance eats into your equity — which is why buying tends to win only once you keep the car well past payoff.
Formula
Lease cost = lease payment × months + due at signing. Buy net cost = (loan payment × months paid + purchase down payment) − (resale value − loan balance still owed). The lower of the two wins for that period.
Worked example
$38,000 car, 36-month window. Lease: $420 × 36 + $2,500 = $17,620. Buy: finance $33,000 ($38,000 − $5,000 down) on a 60-month, 7.5% loan ≈ $661/month; 36 payments ($23,805) + $5,000 down = $28,805 out. Resale at 55% = $20,900 minus ~$14,695 still owed = $6,205 equity. Buy net = $28,805 − $6,205 = $22,600. Leasing saves ~$4,980 here — but buying pulls ahead once the loan is paid off and you keep the resale value.
What affects your result
- →Comparison period — short windows favor leasing, long ownership favors buying
- →Lease payment and cash due at signing
- →Purchase price and down payment
- →Purchase APR, which sets the buy-side payment and remaining balance
- →Resale value at the end (depreciation), which drives your equity
What this estimate includes
- ✓Total lease cost: payments over the period plus cash due at signing
- ✓Total purchase cash paid over the period plus the down payment
- ✓Resale value at the end, netted against the loan balance still owed
- ✓The net cost difference between leasing and buying
What it does not include
- ×Lease mileage overages, wear-and-tear charges and disposition/acquisition fees
- ×Sales tax differences between leasing and buying
- ×Insurance, maintenance and gap insurance
- ×It assumes a fixed 60-month purchase loan and a single resale-value estimate
Good to know
Clear, practical answers about the lease vs buy calculator.
Is it cheaper to lease or buy a car?＋
Over a single 2–3 year term leasing can look cheaper monthly, but buying is almost always cheaper long term because you keep the car's resale value instead of handing it back. If you keep cars 6+ years, buying wins decisively.
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