Lease vs Buy Calculator — Which Is Cheaper?

Leasing looks cheaper month to month, but buying leaves you with a car worth something at the end. This compares both over the same period, accounting for the resale value you keep when you buy.

How this calculator works

For buying, we add your down payment to all the loan payments over the period, then subtract the car’s resale value — what you could sell it for — to get the net cost of those years. For leasing, we add the amount due at signing to every lease payment. The smaller number wins, and the verdict shows the gap.

What changes the number

Buying usually wins if you keep the car well past the loan; leasing can win if you always want a new car every 2–3 years.
Resale value is the swing factor — a car that holds value (high % at the end) makes buying far cheaper.
Leases cap your miles (often 10–12k/yr) and charge for wear and overage; heavy drivers should lean toward buying.

Frequently asked questions

Why does buying come out cheaper so often?

Because you keep an asset. Lease payments vanish; loan payments build equity in a car you can later sell. Once you subtract that resale value, buying usually costs less over the same years.

When does leasing actually make sense?

If you like a new car every few years, drive modest miles, and value a predictable payment and warranty coverage, leasing’s convenience can be worth the premium.

What resale percentage should I use?

Many cars retain roughly 50–60% of their value after 3 years; trucks and some brands hold more, luxury sedans often less. Check a valuation site for your specific model.