Buy vs Lease Car Calculator
Example: Vehicle price: 36000 $ · Purchase down payment: 5000 $ · Loan APR: 7 % · Comparison period / loan term: 36 months · Resale value at end of period: 21000 $ · Lease monthly payment: 450 $ · Lease drive-off / down: 2500 $ · Lease term: 36 months
| Net cost to buy | $18,459 |
| Total cost to lease | $18,700 |
| Lease cost minus buy cost | $241 |
Worked example
Buy a $36,000 car with $5,000 down at 7% over 36 months: the payments total about $34,480, so with the down payment you have spent about $39,480. If it is worth $21,000 when you sell, your net cost of ownership is roughly $18,480. A comparable lease at $450 a month for 36 months plus $2,500 drive-off costs $18,700. In this case buying edges out leasing by about $220 and leaves you owning the car — but a stronger resale value or lower rate widens the gap further in buying favor.
Frequently asked questions
Why does resale value matter so much?
When you buy, the money you get back at sale offsets what you spent, so a car that holds its value makes buying far cheaper than the sticker suggests. Leasing gives you nothing back at the end. That is why a realistic resale estimate is the most important input here.
When is leasing actually the better deal?
Leasing can win if you always want a newer car, drive predictable low mileage, value a warranty covering the whole term, or the specific lease has heavy manufacturer subsidies. It rarely wins on pure cost if you keep cars a long time.
What about mileage limits on a lease?
Leases cap annual mileage, and overages cost per mile at lease-end. If you drive more than the allowance, add expected overage charges to the lease cost, or a lease may look cheaper than it is for you.
Does this include maintenance and insurance?
No, it compares the financing side. Maintenance often favors leasing (car stays under warranty) while insurance can be similar. Layer those in for a complete comparison if they differ materially between your options.