Lease vs Buy Car Calculator
Enter your vehicle terms below, and this lease vs buy car calculator compares the total cost of leasing against financing a purchase.
About
About Lease vs Buy Car Calculator
Leasing a car is, in practical terms, paying for the vehicle's depreciation during the years you drive it, rather than paying off its full value the way a purchase loan does, which is exactly why lease payments run lower but leave you with nothing to show for it at the end. A lease vs buy car calculator lays both paths out side by side, and this car lease calculator accounts for the fees and mileage limits that a simple monthly payment comparison tends to leave out.
Looking only at the monthly payment misses a meaningful chunk of the real comparison. Total cost of ownership needs to include down payment, acquisition fees, projected maintenance responsibility, and, for a purchase, expected resale value at the end, all of which shift the actual math in ways the sticker-price monthly figure alone doesn't reveal.
Lease agreements also come with mileage caps that catch people off guard, typically somewhere between 10,000 and 15,000 miles a year, with real financial penalties per mile over that limit when the vehicle is returned, a cost that's easy to underestimate if your actual driving habits exceed what you budgeted for when signing the lease.
Enter the vehicle price, lease versus purchase down payment, monthly lease rate versus loan payment, lease term, and expected resale value if buying. The calculator contrasts the full financial outlay of both paths over the comparison period.
If you like driving a new car with current technology every few years and stay within standard mileage limits, leasing tends to come out ahead financially for that specific lifestyle, where buying and reselling frequently usually doesn't. Your budget figures stay entirely private, calculated locally.
FAQ
Frequently asked questions
What's the core financial difference between leasing and buying?
Leasing pays for the vehicle's depreciation over the lease term, lower monthly payments but zero equity at the end. Buying pays off the full asset value, higher payments but full ownership once the loan is paid off.
Are there mileage limits when leasing?
Yes, typically between 10,000 and 15,000 miles a year, with real per-mile penalty fees charged if you exceed that cap by the time the lease ends.
Who handles maintenance on a leased vehicle?
Since the car remains the leasing company's property, lessees are generally required to follow the manufacturer's service schedule, though major mechanical repairs are often covered under factory warranty during the lease term.
Is leasing the better option if I want a new car every few years?
Often yes, if you stay within standard mileage limits and prioritize driving current models over building equity, leasing tends to be more cost-effective for that specific preference.
Is this tool free for automotive financial planning?
Yes, fully free with no account or sign-up required.
Are my budget figures saved anywhere?
No, every calculation runs locally through client-side JavaScript. Figures you enter are never stored or transmitted to a server.
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