Car lease vs buy calculator

Compare total cost, not the ad's monthly number.

Same car, same term — what you actually spend either way.

Vehicle price$35,000

$10,000$100,000

Monthly lease payment$450

$100$2,000

Term36 mo

123660

Loan APR (if buying)6%

1%18%

Value at end of term$21,000

$0$35,000

What the car is worth when the term ends

Net cost over 36 months

LeaseCHEAPER

$16,200

$450/mo · own nothing at the end

Buy

$17,332

$1,065/mo · keep $21,000 of value

Lease$16,200Buy$17,332

Leasing costs $1,132 less over this term. But you walk away owning nothing — run a longer horizon before deciding.

From the lending desk

A lease quote hides the residual math. Ask for the money factor and residual in writing — if they won't give it, that tells you something too.

Detailed comparison

The same 36-month term, priced both ways at 6% APR.

Leasing versus buying the same vehicle over 36 months at 6% APR.
Line item	Leasing	Buying	Difference
Monthly payment	$450	$1,065	$615
Total payments	$16,200	$38,332	$22,132
Value you keep at the end	$0	$21,000	$21,000
Own it at the end	No	Yes	—
Net cost	$16,200	$17,332	+$1,132

The buy column assumes the full price is financed over the same term at 6% APR, with no money down. Taxes, fees, and lease mileage penalties are excluded from both sides.

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 the vehicle
No wear-and-tear penalties
Lower long-term costs

Key takeaway

Leasing is cheaper over this term, but the comparison flips the longer you keep the car — a bought car stops costing you anything once the loan is paid off.

What's next

Now that you know the cost both ways, take the next step.

Need help with the terms? View the glossary or check the FAQ.