Lease vs buy car calculator: which costs less?
This lease vs buy car calculator puts paying cash, a car loan and a lease side by side over the same term – including resale value, interest you give up, extra miles and return fees. You see the total cost and the cost per month, and which option is cheapest.
Source: Wikipedia – Leasing. Updated: .
How it is calculated
Whether buying or leasing costs less is decided by the total cost over the same term – not by the monthly payment. The calculator lays all three routes side by side.
How it is calculated
- Cash: price minus resale value (what you sell it for at the end) plus the interest the tied-up money would otherwise have earned.
- Loan: down payment plus all instalments (fully amortising) minus resale value plus lost interest on the down payment and instalments. Total interest is listed separately.
- Lease: amount due at signing plus all payments plus extra-mile and return fees plus lost interest on the upfront amount and payments. The car goes back, so there is no resale value.
What matters most
- Resale value is the biggest unknown when buying; the higher it is, the better buying looks.
- With a lease, allowed miles and the condition at return matter: extra miles and damage can add up.
- A low lease rate or a manufacturer discount can make leasing attractive, a high loan rate can make financing unattractive.
The result is a calculation, not a decision: flexibility, wanting to own the car and maintenance packages count too. All figures are your assumptions. Your entries stay in your browser.
Frequently asked questions
Is it cheaper to lease or buy a car?
It depends on price, resale value, interest, lease payment and mileage. If you keep a car for a long time and drive a lot, buying is often cheaper; if you want a new car regularly and stay within the mileage limit, leasing can work well.
What is lost interest?
The money you tie up in the price, down payment, upfront lease payment or monthly payments could earn interest in a savings account. The calculator counts that as a cost so the options can be compared fairly.
How do I estimate the resale value?
It is an estimate of the selling price after the term. Check used-car listings for models of the same age and mileage.
What happens if I drive too many miles on a lease?
You pay the contract’s fee for every mile above the allowance, often $0.15 to $0.30. The calculator works that out over the whole term.
Why is a loan more expensive than paying cash?
Because you pay interest on the loan. On the other side, you keep your money and could earn interest on it; the calculator accounts for both.
Are my entries private?
Yes. Everything is calculated in your browser; nothing is uploaded.
Sources and legal basis
As of: · Editorial policy
Related tools
- Car Lease CalculatorCar lease calculator: monthly payment from price, down payment, residual value, term and rate, plus the lease factor rated. Or work out your offer’s rate.
- Auto loan calculatorAuto loan calculator: enter price, down payment, trade-in, tax, APR and term for the monthly payment, total interest, amortization and the price you can afford.
- Car cost per month calculatorCalculate your car cost per month: depreciation, insurance, tax, fuel and upkeep – plus a comparison with transit or car sharing and the break-even mileage.
- Electric car vs gas car cost: which is cheaper?Compare electric car vs gas car cost with your own numbers: total cost, cost per mile and the year the electric car pays off, with a chart. Free and private.
- Gas cost calculatorGas cost calculator for road trips: enter mpg, miles and gas price to get the total fuel cost, cost per person, gallons used and cost per mile. Metric too.
- kg to lbs converterConvert kg to lbs and back: 1 kg = 2.2046 lb. Shows pounds and ounces, stone and pounds, grams, tons and a kg to lbs chart – exact to the legal definition.
- CFM CalculatorCFM calculator for airflow from room size and air changes or from duct area and air velocity, with conversion to m³/h, L/s and m³/min and the steps shown.
- Asphalt CalculatorAsphalt calculator for the tons needed from length, width, layer thickness and compacted density, with an allowance for waste; imperial and metric units.
- Roommate rent split calculator: fair by room size and billsRoommate rent split calculator: share rent by room size, common areas and utilities fairly, with extras for a balcony or bath. With chart and text file.