Lease vs. Buy Calculator

Compare total out-of-pocket cost over the same period to see whether leasing or financing makes more financial sense for you.

Compare Your Options

Leasing

Buying (Financing)

Cost Over Lease Term

Total Cost to Lease
$0
Net Cost to Buy
$0
Buying: payments made in period$0
Buying: remaining loan balance$0
Buying: minus resale value$0
Enter your numbers to see which option costs less over the lease term.

Leasing vs. Buying: What to Consider

Leasing Tends to Make Sense When

  • You like driving a new car every 2–3 years
  • You drive fewer miles than the lease's annual allowance
  • You prefer lower monthly payments and minimal maintenance costs
  • You use the vehicle for business and can deduct lease payments

Buying Tends to Make Sense When

  • You plan to keep the car well beyond the loan term
  • You drive high annual mileage
  • You want to build equity and eventually own the car outright
  • You want the freedom to modify or sell the vehicle anytime

Once you've financed a purchase, use the auto loan calculator to see your full monthly payment and amortization schedule, or the car affordability calculator to check the purchase fits your budget.

Disclaimer: This tool provides a simplified comparison. It does not account for lease mileage penalties, maintenance differences, insurance differences, or tax treatment, all of which can affect the true cost of each option.