Lease vs Buy Car Calculator
Compare the total cost of paying cash, financing and leasing a car over the same period
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Compares paying cash, a car loan, a lease and a long-term rental over the same number of years, after taking off the value of the car you keep.
How to use
- Under "Shared assumptions", enter the "Vehicle price", the "Comparison period" and the car's value at the end, as a yearly rate or an amount.
- Enter your own "Insurance", "Maintenance and parts" and "Other yearly costs".
- Fill in each option. For the lease, choose "Calculate from terms" or "Enter quoted amount"; tick what a lease or rental payment already includes.
- Read the net cost of each option at the top, then the "Breakdown by option" table and the "Differences" list.
How it works
- Net cost = total spent + interest forgone − car value at the end + loan still owed. Deposits are returned, so only their forgone interest counts.
- Interest forgone uses the optional rate, compounded monthly; 0 leaves it out. Lease and rental terms equal the comparison period.
- Taxes, insurance and registration are not calculated. This is arithmetic on your assumptions, not a recommendation; inputs stay in this browser.
Questions and answers
- Is it cheaper to lease or buy a car?
- It depends on the price, rates, how long you keep the car and its value at the end. Use the same period for every option and compare the net cost row.
- Why count the value of the car at the end?
- After paying cash or a loan you own a car you can sell; after returning a lease or rental you own nothing.
- What does interest forgone mean?
- What the money paid out could have earned at your rate. For example, 30,000 paid up front at 3% a year for 3 years forgoes about 2,822.
- What if the loan term is longer than the comparison period?
- The balance still owed at the end of the period is taken off the car's value.