Compare the total costs of leasing versus buying a car. Make informed vehicle financing decisions with detailed cost analysis, monthly payment comparisons, and personalized recommendations.
Updated: November 2025 • Free Tool
Estimated value at end of term
A lease vs. buy calculator is a free automotive financial tool that helps you compare the total costs of leasing versus buying a vehicle. It calculates all expenses associated with each option including monthly payments, fees, interest, depreciation, and equity to help you make an informed decision based on your financial situation and driving needs.
This calculator helps with cost comparison (understand total expenses for leasing vs. purchasing), financial planning (budget for monthly payments and long-term costs), decision making (choose the best financing option for your situation), value analysis (evaluate which option provides better financial value), and scenario comparison (test different terms, prices, and conditions).
Lease Total Cost:
Down Payment + (Monthly Payment × Term) + Fees + Excess Mileage
Buy Total Cost:
Down Payment + (Monthly Payment × Term) - Residual Value
Buy Monthly Payment:
P × [r(1+r)^n] / [(1+r)^n - 1]
P=Principal, r=Monthly Rate, n=Months
Where:
Example:
$30,000 car, $3,000 down
Lease (36 mo): $400/mo = $17,400 total
Buy (60 mo, 4.5% APR): $503/mo = $15,202 net cost
Result: Buying saves $2,198 (12.6%)
Make better vehicle financing choices based on real cost comparisons. See exactly how much you\'ll spend and what you\'ll own with each option. Avoid buyer\'s remorse by understanding the full financial picture before signing.
Budget accurately for vehicle expenses and understand long-term costs. Plan for lease-end fees or loan payoff. Compare how different down payments, terms, and rates affect your total cost over the entire ownership period.
Determine which option provides better financial value for your specific situation. Understand the trade-offs between lower monthly payments (lease) and long-term savings (buy). See how mileage, term length, and interest rates affect the comparison.
Compare different vehicles, terms, and financing options side-by-side. Test how changes in down payment or interest rates affect your decision. Explore multiple scenarios to find the perfect financing strategy for your budget and goals.
Different vehicles depreciate at different rates, significantly impacting both lease and buy costs. Luxury vehicles and EVs depreciate faster, making leasing potentially better short-term, while economy cars with slow depreciation favor buying.
Slow Depreciation
Toyota, Honda, Subaru - 50% retained after 5 years. Buying strongly recommended.
Average Depreciation
Ford, Nissan, Hyundai - 35-45% retained. Buying usually better if keeping 5+ years.
Fast Depreciation
Luxury, EVs - 25-30% retained. Leasing can limit depreciation exposure short-term.
Financing rates dramatically affect the total cost of buying. A 1% difference in APR equals $1,500+ over a 5-year loan. Leases use a "money factor" (interest rate ÷ 2400 = money factor). For example, 4.8% APR = 0.002 money factor. Shop rates aggressively - credit unions often beat dealer financing by 1-2%, saving thousands.
Higher mileage strongly favors buying. Leases typically allow 10,000-15,000 miles/year with $0.20-0.30/mile excess fees. If you drive 20,000 miles/year, that\'s $1,500-2,250 in annual excess fees. Over 3 years, that\'s $4,500-6,750 extra - often more than the savings from lower lease payments. High-mileage drivers should almost always buy.
If you like new cars every 2-3 years, leasing can make sense with lower payments and no trade-in hassle. However, if you keep vehicles 5+ years, buying is dramatically cheaper. After 5 years of payments, you own a vehicle worth $15,000-20,000. If you lease continuously, payments never end and you never build equity. The break-even is typically 3-4 years.
Whether you choose to lease or buy, Carvetka helps you track every expense automatically. Monitor lease payments and prepare for end-of-lease inspection, or track loan payments and watch your equity grow. See if your actual costs match the calculator\'s estimates and make better decisions next time.
Track monthly lease payments, acquisition fees, and prepare for lease-end. Monitor mileage to avoid excess fees. Get alerts 90 days before lease end to plan your next move.
Monitor loan payments, principal vs. interest breakdown, and watch your equity grow. See your current equity value and track total cost of ownership vs. calculator estimates.
For leases: maintain pristine records for lease-end inspection to avoid excess wear charges. For purchases: comprehensive service history increases resale value by 10-15%.
Compare your actual total cost vs. calculator estimates. Track all expenses to see if leasing or buying was the right choice, helping you decide better next time.
