Lease vs. Buy Car Calculator
Compare the total cost of leasing vs. buying a car side by side. See monthly payments, total expenditure, and which option saves you more over the same period.
π Buy Options
π Lease Options
Recommendation
Lease saves $2,977
π Buy
Monthly: $740
Total paid: $49,376
Interest: $6,576
Net cost (after resale): $27,376
π Lease
Monthly: $539
Total cost: $24,399
Residual: $22,000
You return the car at end
π‘ How to Use the Lease vs. Buy Car Calculator
Lease vs. Buy: How to Compare
The lease vs. buy decision comes down to your financial priorities, driving habits, and how long you plan to keep the vehicle. This calculator gives you a direct side-by-side comparison of total costs over the same time period.
Key Factors to Compare
| Factor | Lease | Buy |
|---|---|---|
| Monthly Payment | Lower (you pay for depreciation only) | Higher (you pay for the entire vehicle) |
| Ownership at End | You return the car | You own the car outright |
| Mileage | Limited (10,000β15,000/year) | Unlimited |
| Maintenance | Usually under warranty | Your responsibility after warranty |
| Customization | Not allowed | Complete freedom |
| Tax Advantage | Tax on monthly payment only (in many states) | Tax on full purchase price |
| Equity Building | None | Yes β car becomes an asset |
When Leasing Makes Sense
- You drive fewer than 12,000 miles/year
- You prefer a new car every 2β3 years
- You want lower monthly payments
- You use the vehicle for business (tax deduction benefits)
When Buying Makes Sense
- You drive 15,000+ miles/year
- You plan to keep the car 5+ years
- You want to build equity
- You want freedom to modify the vehicle
The True Cost Comparison
Over 10 years: a buyer who keeps a $40,000 car for 10 years after a 5-year loan spends approximately $50,000 total (price + interest β resale). A leaser paying $450/mo for the same 10 years spends $54,000 with no car to show at the end.