About the Lease vs. Buy Calculator
Leasing has lower payments but you own nothing at the end; buying costs more monthly but leaves you with a car that has resale value. This compares the real net cost of each over the same period.
How it’s calculated
Lease net cost = due at signing + monthly × term. Buy net cost = down payment + total loan payments − resale value at the end.
Example calculation
On a $35,000 car over 36 months, a $420 lease can cost about $1,600 more than buying and keeping the resale value.
Frequently asked questions
When does leasing make sense?
If you value low payments, drive modest miles, and like a new car every few years, leasing can fit. Buying almost always wins if you keep the car well past the loan payoff.
What resale value should I use?
A common rule is that a car retains roughly 50–60% of its value after three years, but it varies a lot by model. Check resale estimates for the specific car.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.