Lease vs Buy Calculator
Free lease vs buy calculator that compares a car lease with financing and shows which one costs less over the term.
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What is Lease vs Buy Calculator?
The Lease vs Buy Calculator prices both ways to drive the same car over the same term: a loan amortized at your APR with down payment and trade-in credit, and a lease built from capitalized cost, residual value and money factor with monthly sales tax. It lays the monthly payments, drive-off amounts and totals side by side, then settles it with a net-cost verdict that credits the resale value you keep when you buy — the number that actually decides whether leasing is worth it.
Key Benefits
- Both paths priced from the same price, term and residual inputs
- Money factor converted to APR so the two rates can be compared
- Due-at-signing and total-paid breakdowns like a real lease worksheet
- Net-cost verdict instead of a cheapest-payment illusion
- Instant repricing while you negotiate at the dealership
Common Use Cases
- •Deciding between a dealer lease offer and a bank auto loan
- •Checking whether a low money factor offsets a low residual
- •Comparing a 36-month lease against a 60-month loan
- •Negotiating drive-off fees with numbers in hand
- •Explaining to a family member why the smallest payment is not the best deal
How to Compare Lease vs Buy
- Start with the vehicle price: Enter the selling price you negotiated, your planned down payment and any trade-in credit. Both paths start from the same numbers so the comparison stays honest.
- Set the finance terms: Enter the loan APR the dealer or bank quoted and the term in months, commonly 36 to 60. The buy column amortizes the loan and subtracts the resale value you keep at the end.
- Set the lease terms: Enter the money factor from the lease worksheet, the residual percent and the acquisition and disposition fees. The lease column builds the payment from depreciation plus rent charge plus tax.
- Read the net-cost verdict: Compare net cost of driving: everything paid minus what you keep. A cheap lease payment with a high drive-off can still lose to buying — the verdict already accounts for that.
Key Features
- Loan amortization with APR, down payment and trade-in credit
- Lease payment built from depreciation plus rent charge plus tax
- Due-at-signing and total-paid breakdowns for both paths
- Net cost verdict that credits the resale value you keep when buying
- Money factor to APR conversion at a glance
Frequently Asked Questions
Is leasing always cheaper per month?
Usually yes, because you only pay for the depreciation the car suffers during the term plus a rent charge, not the whole price. But cheap monthly payments hide what you give up: no ownership at the end, mileage limits, and fees at both ends. The net-cost verdict compares what you paid minus what you keep, which is the only fair basis.
How do I convert money factor to APR?
Multiply the money factor by 2400. A money factor of 0.00125 equals a 3 percent APR, and 0.002 equals 4.8 percent. The calculator shows this conversion next to the lease payment so an attractive money factor cannot hide an unfavorable rate.
What residual value should I use?
Use the percent on the lease worksheet the dealer prints, typically 50 to 65 percent of MSRP for a 36-month term. The same percent doubles as the resale estimate for the buy path; if you expect the model to hold value better than that, buying gains an edge the calculator will reflect.
Does the comparison include taxes?
Yes, applied the way each path usually applies them: sales tax on the purchase price after trade credit when buying, and tax on each lease payment for states that tax leases monthly. Some states tax the full lease upfront; if yours does, treat the result as slightly optimistic for leasing.