Lease vs Buy Car Calculator
Lease or buy? Enter the car price, down payment, APR, and term to compare the real cost of each — including what you own at the end.
How to use this calculator
- Enter car price (MSRP).
- Enter down payment (both options).
- Enter term.
- Enter aPR (lease money factor + loan).
- Enter residual value at end (% of price).
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Leasing pays for the car's depreciation plus a finance charge: monthly lease = (price − residual) ÷ term + (price + residual) × (APR ÷ 2400). Buying finances the full purchase and you keep the car. After the term, the buyer still owns a car worth the residual amount (minus any remaining loan); the lessee hands the keys back. The comparison nets both positions out.
Frequently asked questions
Is a lease ever cheaper than buying?
The monthly payment is almost always lower — you only pay depreciation — and you never owe more than the car is worth. Over the term, leasing costs less if you would have sold the car at the 3-year mark anyway. Buying wins the moment you keep the car beyond the loan, because it has years of payment-free driving left.
What costs does leasing hide?
Mileage overage (typically $0.15–0.25 per mile), excess wear and tear, acquisition and disposition fees, and the fact that you build no equity. The residual percentage in this calculator is a projection — the dealer's quote is the binding number.
Does the money factor equal the APR?
Not exactly. Dealers quote a money factor (a tiny decimal like 0.0025), which you multiply by 2,400 to get the approximate APR. This calculator converts the APR you enter into a money factor — real quotes can differ by negotiation and credit score, so plug in the dealer's actual money factor for a precise lease.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.