Lease vs Buy Calculator

Compare the costs of leasing versus buying a vehicle to make an informed decision

What This Tool Does

Compares the total cost of leasing vs buying the same vehicle, including all payments, retained equity, and final ownership value to show which option saves you money.

Who Should Use This

Anyone deciding between leasing or buying. Especially useful if you're unsure about long-term ownership or want to understand the true cost difference.

Key Insight

Buying usually costs less long-term since you build equity, but leasing offers lower monthly payments. The right choice depends on your priorities and situation.

1Enter Vehicle Details

$10,000$100,000
$100$2,000
1224364860
$0$15,000$30,000
0%7.5%15%

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2Results: Buying is Better

Buying saves you:

$11,043

Compared to leasing (after accounting for equity)

Lease Total$17,253
Buy Total$24,210
Retained Equity$18,000
Net Buy Cost$6,210

3Cost Comparison Chart

4Detailed Comparison

LeasingBuyingDifference
Monthly Payment$450$495$45
Down Payment$0$6,390$6,390
Total Payments$17,253$24,210$6,957
Ownership at EndNoYes-
Vehicle Equity$0$18,000$18,000
Net Cost$17,253$6,210+$11,043

Other Considerations

Leasing Advantages

  • Lower monthly payments
  • New vehicle every few years
  • Lower repair costs (under warranty)
  • No trade-in or selling hassles
  • Lower upfront costs (often no down payment)

Buying Advantages

  • Build equity over time
  • No mileage restrictions
  • Freedom to modify vehicle
  • No wear-and-tear penalties
  • Lower long-term costs

Key Takeaway

Buying appears more economical for your situation. If you plan to keep the vehicle for many years or drive high mileage, buying is typically the better financial choice in the long run.