Lease vs Buy Calculator
Updated
Lease vs buy depends on horizon, mileage, depreciation, rates, and incentives. We compare both side-by-side.
Leasing typically wins on monthly payment but builds no equity and carries mileage limits. Buying typically wins over long horizons because you keep the residual value. The honest answer depends on your horizon, miles per year, financing rate, residual, and incentives.
Estimate only. Estimate only. Not a loan offer, lender quote, dealer quote, lease agreement, retail installment sales contract, DMV estimate, or financial advice. Actual rates, payments, taxes, fees, incentives, residual values, insurance, fuel, and maintenance costs may vary.
Comparison setup
Buy
Lease
Buy
$729.43/mo
- Total cost (incl. equity): $30,431.70
- Total interest: $6,485.80
- Upfront cash: $5,280.00
Lease
$550.60/mo
- Total cost over horizon: $39,643.20
- Due at signing: $550.60
Lower estimated total cost
Buy
info: Lease vs buy depends on assumptions
Results vary heavily with horizon length, depreciation, mileage, rates, residual value, and incentives. Treat as an estimate.
Assumptions usedv2026-05-04
- Horizon5 years
Lease vs Buy
Car Finance Tools · https://carfinancetools.com
Generated: 2026-05-07T14:25:51.329Z · Assumptions version: 2026-05-04
Inputs
- Horizon
- 5 years
- Buy price
- $38,000.00
- Down payment
- $3,000.00
- APR
- 6.50%
- Lease MSRP
- $38,000.00
- Lease selling price
- $36,500.00
- Residual %
- 55%
- Money factor
- 0.00150
Results
- Buy monthly
- $729.43
- Lease monthly
- $550.60
- Buy total cost
- $30,431.70
- Lease total cost
- $39,643.20
- Lower total cost
- buy
Estimate only. Not a loan offer, lender quote, dealer quote, lease agreement, retail installment sales contract, DMV estimate, or financial advice. Actual rates, payments, taxes, fees, incentives, residual values, insurance, fuel, and maintenance costs may vary.
How this is calculated
We sum buy payments to the horizon (capped at the loan term), add up-front cash, and subtract estimated equity (estimated value − remaining loan). For lease, we sum lease cost across required lease cycles to fill the horizon. No universal winner is declared without strong assumptions.
For when each side tends to win, read our lease vs buy guide.
Frequently asked questions
- Is leasing always cheaper monthly?
- Often, yes — but you don't build equity, and mileage limits and excess-mileage charges can change the picture.
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