Auto Lease vs. Buy Calculator
A lease has lower payments, but you return the car and own nothing. A loan costs more each month and leaves you with a car that has value. This calculator compares the two over the length of the lease.
Enter your figures below. Results update as you type.
Over 36 monthsLeasing costs lessby $1,543.36
- Net cost of leasing
- $18,120.00
- Net cost of buying
- $19,663.36
- Loan payment
- $633.64
- Equity in the car at that point
- $6,147.62
Buying is measured as what you paid, plus what you still owe, minus what the car is worth at the end of the lease term. Sales tax, insurance, maintenance and lease mileage charges are left out.
Lease vs. buy
Lease
$420.00Monthly payment
$18,120.00Paid over 36 months
$0.00Value you keep
Buy
$633.64Monthly payment
$25,810.98Paid over 36 months
$6,147.62Equity you keep
How the Auto Lease vs. Buy calculation works
Cost of buying = down payment + payments + balance still owed - car's value
For a $35,000 car, a 36-month lease at $420 with $3,000 at signing costs $18,120. Buying with $3,000 down at 7% over 60 months costs $633.64 a month; after 36 months you would have $6,148 of equity, for a net cost of $19,663. Leasing is about $1,543 cheaper over that period.
Frequently asked questions
Is it cheaper to lease or buy a car?
Over a single lease term the two are often close. Buying pulls ahead the longer you keep the car, because the payments stop and the car still has value. Leasing suits drivers who want a new car every few years.
What are the downsides of leasing a car?
Mileage limits with charges for going over, fees for wear beyond normal, and no asset at the end. Ending a lease early is also expensive.
Related calculators
Last reviewed: