Skip to main content

Scenario tools

Lease vs. Buy

Leasing or buying

Lease vs. Buy a Car Calculator

Compare the full cost of leasing and buying the same kind of car over the same time and mileage.

Lease offer

Use the after-tax numbers from your actual offer because lease taxes vary by state and city.

If the amount due at signing includes the first monthly payment, subtract that payment here. The calculator counts every monthly payment separately. Exclude refundable deposits.

Enter the contract rate per mile.

Insurance, maintenance, energy and local fees not already reflected elsewhere.

Purchase alternative

Use the final price after any incentives you expect to receive.

Matches the lease term so both options cover the same period.

Include registration, inspection, vehicle property or excise tax, and any EV fee that applies where you live.

What happens to the cash difference?

This is not a lease disclosure, financing offer, tax calculation or recommendation. Check every fee and mileage rule in the contract before you sign.

Results

Enter the lease offer and buying option using the same number of months and expected mileage.

Count each lease charge once

This comparison counts a monthly payment for every month of the lease. If $3,000 due at signing includes the first $400 payment, enter $2,600 as upfront lease costs and $400 as the monthly payment. For 36 months, those payments and upfront costs total $17,000 before other fees and operating costs, not $17,400.

Acquisition or disposition fees should appear in the separate fee field only when they are not already included elsewhere. At 2,000 excess miles a year for three years and $0.25 per mile, the mileage charge alone would be $1,500.

The buying alternative uses the same period and mileage, with resale value and any remaining loan balance. Returning a leased car does not leave you with its residual value as an asset. A buyout is a separate choice that also needs its full cost.

The comparison is approximate and does not reproduce every payment date, refundable security deposit or contract condition. Use after-tax quotes, keep refundable amounts separate and test what happens if the expected resale value or mileage changes.

Related guides