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Car Lease vs. Buy Calculator

Pit a lease against a traditional 60-month loan over the same time frame. Discover which path actually costs you less out of pocket.

Math Engine Online
Vehicle Details
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Comparison Terms

Standard lease length, and the point where we check the loan equity.

Lease Details

Buy Details

Calculated assuming a standard 60-month loan term to provide a realistic monthly loan payment, checking total equity after 36 months.
Total True Cost After 36 Months
Cheaper Option Over 36 Mos:Leasing Wins

Saves you $2275 overall

Lease It
Monthly Payment$622
Total Lost (Out of Pocket)$25408
Buy It (60mo Loan)
Monthly Payment$846
Resale Value at end+$24750
Remaining Loan Bal.-$18986
Leftover Equity$5764
Total Lost (Cost - Equity)$27683

Summary: Over a 36-month period, leasing this vehicle is the more cost-effective option, saving you approximately $2275. The monthly lease payment would be $622/mo with a total out-of-pocket cost of $25408, compared to a loan payment of $846/mo with a true cost (after equity) of $27683.

Lease vs Buy Decision

This calculator provides cost comparison only. Consider:

  • Mileage limits and overage fees in leases
  • Wear-and-tear charges on lease returns
  • Future vehicle values (used for buyout scenarios)
  • Your driving habits and preferred vehicle lifespan

Methodology

Buy Cost: (Monthly Payment × Months) + Maintenance − Residual Value

Lease Cost: (Monthly Payment × Months) + Disposition Fee + Excess Mileage

Frequently Asked Questions

When does leasing make sense?

Lease if: you drive <12k miles/year, want new cars every 3-4 years, prefer no maintenance hassle. Buy if: you drive >12k miles/year, keep cars 5+ years, or want customization.

What about excess mileage charges?

Leases typically charge $0.15-0.30 per excess mile. On a 36-month lease with 12k/year limit (36k total), going 40k miles costs $600-1200 extra.

Can I buy a car at lease end?

Some leases allow buyouts at residual value (usually 50-60% of MSRP). Compare lease-end buyout price vs. market value before deciding.

Disclaimer & Legal Notice

All tools and calculators provided by Lapsite are for informational and educational purposes only. While we strive for mathematical precision, these results are approximations and should not be used as the sole basis for critical engineering, financial, or safety decisions. Lapsite Ltd and its creators provide no warranty, express or implied, regarding the accuracy or fitness of these calculations for any specific use.Always double-check calculations independently, especially for safety-critical components such as brakes, suspension, or structural changes. By using these tools, you agree that Lapsite Ltd is not liable for any mechanical failure, financial loss, or injury resulting from the use of this data.

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