Lease vs Buy Calculator
Compare the total out-of-pocket cost of buying with a loan versus leasing — over the number of years you actually plan to keep driving, with leases repeating to fill the horizon.
Buying
Leasing
Comparison
Leasing wins
$6,114
Leasing saves $6,114 over 6 years.
Leasing assumes 2 leases of 36 months, each with the same due-at-signing and end fees.
How the math works
- Buying: down payment plus every loan payment that falls inside the horizon (standard amortization at the APR you enter). If the horizon ends before the loan is paid off, the remaining balance is shown — along with the caveat that you own a car worth roughly that much, which isn't counted.
- Leasing: the horizon is filled with back-to-back leases of the term you enter. Each lease costs its due-at-signing plus end fees, plus the monthly payment for every month. A final partial lease still pays full due-at-signing and end fees — the conservative read.
- Winner: whichever total is lower. Within a few dollars counts as “about even” — the unmodeled costs below could easily swing it.
- Not modeled: insurance differences (leases often require more coverage), maintenance and repairs, mileage overage fees, taxes and dealer fees, and the buyer's equity (resale value) at the end.
Common questions
Is it cheaper to lease or buy a car?
Usually buying is cheaper if you keep the car well past the loan term — once the loan is paid off, your monthly cost drops to nearly zero. Leasing wins for drivers who want a new car every few years anyway, since a buyer in that pattern is always making payments too. Run your numbers above with an honest horizon.
Why does the horizon matter so much?
Because leasing never ends: every 2–3 years you sign a new lease with fresh due-at-signing and disposition fees. Buying hurts more up front (down payment, higher monthly) but the payments stop. The longer your horizon, the more buying pulls ahead.
What costs aren't included in this comparison?
Insurance (often higher on leased cars, which require fuller coverage), maintenance and repairs, mileage overage fees on leases, and the car's resale or trade-in value at the end — the buyer's equity. Those can swing a close comparison, so treat a near-tie as a tie.
What is a disposition fee?
A fee the leasing company charges when you return the car at lease end — typically $300–$500 — supposedly to cover inspection and resale prep. It's in the lease contract's fine print and it's charged every time you turn a car in, so serial lessees pay it over and over.