Most people have two options when it comes to cars: buying or leasing. Many factors influence this decision, and the best option depends on individual circumstances and financial management strategies.
To determine which option is more advantageous, compare the total cost of leasing versus buying the car over the expected ownership period.
Lease vs. Buy Car Calculator
Compare the true total cost of leasing vs. financing — side by side.
Lease Breakdown
Buy Breakdown
Lease monthly payment = Depreciation fee + Finance fee
• Depreciation fee = (Adj. cap cost − Residual $) ÷ Term
• Finance fee = (Adj. cap cost + Residual $) × Money factor
Buy monthly payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
P = loan amount | r = APR ÷ 1200 | n = months
Net buy cost = down + total payments + fees − estimated resale value
Formula used
Lease monthly payment = Depreciation fee + Finance fee
- Depreciation fee = (Adjusted cap cost − Residual $) ÷ Lease term
- Finance fee = (Adjusted cap cost + Residual $) × Money factor
- Money factor = APR ÷ 2400 (industry standard conversion)
Buy (loan) monthly payment = standard amortisation formula: P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] where P = loan amount, r = monthly rate (APR ÷ 1200), n = months
Our car lease vs. buy calculator allows you to clearly compare both options. Each option has its own advantages and disadvantages, and the final decision should come down to total cost, monthly expenses, and whether you plan to continue driving the car after the contract expires.
This calculator is designed to simplify the decision-making process and help you choose the best option.