Car Lease vs Buy Calculator

Leasing and buying are different ways of paying for the same depreciation, and the winner depends almost entirely on how long you keep the car. Leasing pays for the value the car loses during the term and hands it back; buying pays the whole price and keeps whatever is left at the end. Over a short period, leasing often costs less each month; over a long one, owning usually wins. The monthly figure is misleading by design. A lease payment is lower because you are financing only the depreciation, not the whole car, so it never touches the residual value. But a lease is a continuous payment with nothing to show at the end: keep leasing for ten years and you have paid for a decade and own no vehicle, while a buyer who keeps their car owns it outright once the loan ends. Mileage and wear limits decide whether the lease stays cheap. Exceed the annual cap or return the car with damage and you pay extra, which can erase the monthly saving. Buying has no such limits, but it ties up capital and exposes you to repair bills once the warranty ends. The number of miles you drive each year is therefore as important as the payment. This calculator compares total cash out over the period you keep the car, credits the buyer with the car's residual value, and shows which is cheaper. It ignores insurance and maintenance differences and assumes a fixed finance rate. Treat the result as a framework for the decision, and check the lease's mileage cap and the car's realistic resale value before you commit.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.