Car Lease vs. Purchase Calculator
Comparison Results Over Months
.calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 10px;
background-color: #f9f9f9;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.08);
}
.calculator-container h2, .calculator-container h3 {
color: #333;
text-align: center;
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
font-size: 0.95em;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px;
font-size: 1em;
width: 100%;
box-sizing: border-box;
}
button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 5px;
font-size: 1.1em;
font-weight: bold;
cursor: pointer;
margin-top: 25px;
transition: background-color 0.3s ease;
}
button:hover {
background-color: #0056b3;
}
.calculator-results {
margin-top: 30px;
padding-top: 20px;
border-top: 1px solid #eee;
}
.calculator-results h3 {
color: #28a745;
margin-bottom: 15px;
}
.result-section {
background-color: #eaf7ed;
border: 1px solid #d4edda;
border-radius: 8px;
padding: 15px;
margin-bottom: 15px;
}
.result-section h4 {
color: #218838;
margin-top: 0;
margin-bottom: 10px;
font-size: 1.1em;
}
.result-section p {
margin: 5px 0;
color: #333;
}
.result-section p strong {
color: #000;
}
.summary-result {
background-color: #fff3cd;
border: 1px solid #ffeeba;
padding: 20px;
border-radius: 8px;
text-align: center;
font-size: 1.2em;
font-weight: bold;
color: #856404;
margin-top: 20px;
}
.summary-result.better-lease {
background-color: #d4edda;
border-color: #c3e6cb;
color: #155724;
}
.summary-result.better-purchase {
background-color: #d1ecf1;
border-color: #bee5eb;
color: #0c5460;
}
.error-message {
color: #dc3545;
font-weight: bold;
text-align: center;
margin-top: 15px;
}
function calculatePMT(principal, annualRate, termMonths) {
if (termMonths <= 0) return 0;
if (principal <= 0) return 0; // No payment if no principal
if (annualRate === 0) {
return principal / termMonths;
}
var monthlyRate = annualRate / 12 / 100;
var pmt = principal * monthlyRate / (1 – Math.pow(1 + monthlyRate, -termMonths));
return pmt;
}
function calculateRemainingBalance(principal, annualRate, totalTermMonths, paymentsMade) {
if (principal = totalTermMonths) {
return 0;
}
if (annualRate === 0) {
return principal – (principal / totalTermMonths) * paymentsMade;
}
var monthlyRate = annualRate / 12 / 100;
var pmt = calculatePMT(principal, annualRate, totalTermMonths);
var remainingBalance = principal * Math.pow(1 + monthlyRate, paymentsMade) – pmt * (Math.pow(1 + monthlyRate, paymentsMade) – 1) / monthlyRate;
return Math.max(0, remainingBalance); // Ensure balance is not negative
}
function calculateLeaseVsPurchase() {
var carMSRP = parseFloat(document.getElementById('carMSRP').value);
var comparisonTermMonths = parseInt(document.getElementById('comparisonTermMonths').value);
// Lease Inputs
var leaseDownPayment = parseFloat(document.getElementById('leaseDownPayment').value);
var leaseResidualValuePercent = parseFloat(document.getElementById('leaseResidualValuePercent').value);
var leaseMoneyFactor = parseFloat(document.getElementById('leaseMoneyFactor').value);
var leaseAcquisitionFee = parseFloat(document.getElementById('leaseAcquisitionFee').value);
var leaseDispositionFee = parseFloat(document.getElementById('leaseDispositionFee').value);
var leaseSalesTaxRate = parseFloat(document.getElementById('leaseSalesTaxRate').value);
var leaseMonthlyMaintenance = parseFloat(document.getElementById('leaseMonthlyMaintenance').value);
var leaseMonthlyInsurance = parseFloat(document.getElementById('leaseMonthlyInsurance').value);
// Purchase Inputs
var purchaseDownPayment = parseFloat(document.getElementById('purchaseDownPayment').value);
var purchaseInterestRate = parseFloat(document.getElementById('purchaseInterestRate').value);
var purchaseLoanTermMonths = parseInt(document.getElementById('purchaseLoanTermMonths').value);
var purchaseTradeInValue = parseFloat(document.getElementById('purchaseTradeInValue').value);
var purchaseSalesTaxRate = parseFloat(document.getElementById('purchaseSalesTaxRate').value);
var purchaseRegistrationFees = parseFloat(document.getElementById('purchaseRegistrationFees').value);
var purchaseResaleValuePercent = parseFloat(document.getElementById('purchaseResaleValuePercent').value);
var purchaseMonthlyMaintenance = parseFloat(document.getElementById('purchaseMonthlyMaintenance').value);
var purchaseMonthlyInsurance = parseFloat(document.getElementById('purchaseMonthlyInsurance').value);
// Validate inputs
if (isNaN(carMSRP) || carMSRP <= 0 ||
isNaN(comparisonTermMonths) || comparisonTermMonths <= 0 ||
isNaN(leaseDownPayment) || leaseDownPayment < 0 ||
isNaN(leaseResidualValuePercent) || leaseResidualValuePercent 100 ||
isNaN(leaseMoneyFactor) || leaseMoneyFactor < 0 ||
isNaN(leaseAcquisitionFee) || leaseAcquisitionFee < 0 ||
isNaN(leaseDispositionFee) || leaseDispositionFee < 0 ||
isNaN(leaseSalesTaxRate) || leaseSalesTaxRate 100 ||
isNaN(leaseMonthlyMaintenance) || leaseMonthlyMaintenance < 0 ||
isNaN(leaseMonthlyInsurance) || leaseMonthlyInsurance < 0 ||
isNaN(purchaseDownPayment) || purchaseDownPayment < 0 ||
isNaN(purchaseInterestRate) || purchaseInterestRate < 0 ||
isNaN(purchaseLoanTermMonths) || purchaseLoanTermMonths <= 0 ||
isNaN(purchaseTradeInValue) || purchaseTradeInValue < 0 ||
isNaN(purchaseSalesTaxRate) || purchaseSalesTaxRate 100 ||
isNaN(purchaseRegistrationFees) || purchaseRegistrationFees < 0 ||
isNaN(purchaseResaleValuePercent) || purchaseResaleValuePercent 100 ||
isNaN(purchaseMonthlyMaintenance) || purchaseMonthlyMaintenance < 0 ||
isNaN(purchaseMonthlyInsurance) || purchaseMonthlyInsurance < 0) {
document.getElementById('result').innerHTML = 'Please enter valid positive numbers for all fields.';
return;
}
document.getElementById('resultComparisonTerm').innerText = comparisonTermMonths;
// — Lease Calculation —
var capitalizedCost = carMSRP – leaseDownPayment;
if (capitalizedCost < 0) capitalizedCost = 0; // Capitalized cost cannot be negative
var residualAmount = carMSRP * (leaseResidualValuePercent / 100);
var depreciationAmount = capitalizedCost – residualAmount;
if (depreciationAmount < 0) depreciationAmount = 0; // Depreciation cannot be negative
var avgMonthlyDepreciation = depreciationAmount / comparisonTermMonths;
var monthlyFinanceCharge = (capitalizedCost + residualAmount) * leaseMoneyFactor;
var baseMonthlyLeasePayment = avgMonthlyDepreciation + monthlyFinanceCharge;
var monthlyLeaseSalesTax = baseMonthlyLeasePayment * (leaseSalesTaxRate / 100);
var totalMonthlyLeasePayment = baseMonthlyLeasePayment + monthlyLeaseSalesTax;
var totalLeasePaymentsOverTerm = totalMonthlyLeasePayment * comparisonTermMonths;
var totalLeaseOperatingCosts = (leaseMonthlyMaintenance + leaseMonthlyInsurance) * comparisonTermMonths;
var totalLeaseCost = leaseDownPayment + leaseAcquisitionFee + totalLeasePaymentsOverTerm + leaseDispositionFee + totalLeaseOperatingCosts;
// — Purchase Calculation —
var netPurchasePriceForTax = carMSRP – purchaseTradeInValue;
if (netPurchasePriceForTax < 0) netPurchasePriceForTax = 0;
var purchaseSalesTaxAmount = netPurchasePriceForTax * (purchaseSalesTaxRate / 100);
var loanPrincipal = carMSRP – purchaseDownPayment – purchaseTradeInValue;
if (loanPrincipal < 0) loanPrincipal = 0;
var monthlyLoanPayment = calculatePMT(loanPrincipal, purchaseInterestRate, purchaseLoanTermMonths);
var totalLoanPaymentsMadeDuringComparison = monthlyLoanPayment * Math.min(comparisonTermMonths, purchaseLoanTermMonths);
var totalPurchaseOperatingCosts = (purchaseMonthlyMaintenance + purchaseMonthlyInsurance) * comparisonTermMonths;
var estimatedResaleValue = carMSRP * (purchaseResaleValuePercent / 100);
// Calculate remaining loan balance at the end of the comparison term
var remainingLoanBalance = calculateRemainingBalance(loanPrincipal, purchaseInterestRate, purchaseLoanTermMonths, comparisonTermMonths);
// Total cash outflow for purchase
var totalPurchaseUpfrontCosts = purchaseDownPayment + purchaseSalesTaxAmount + purchaseRegistrationFees;
var totalPurchaseCost = totalPurchaseUpfrontCosts + totalLoanPaymentsMadeDuringComparison + totalPurchaseOperatingCosts + remainingLoanBalance – estimatedResaleValue;
// — Display Results —
var resultDiv = document.getElementById('result');
var resultHTML = '';
resultHTML += '
';
resultHTML += '
Lease Scenario Costs:
';
resultHTML += 'Upfront Costs (Down Payment + Acquisition Fee): $' + (leaseDownPayment + leaseAcquisitionFee).toFixed(2) + '';
resultHTML += 'Total Monthly Lease Payments (' + comparisonTermMonths + ' months): $' + totalLeasePaymentsOverTerm.toFixed(2) + '';
resultHTML += 'End-of-Lease Fee (Disposition Fee): $' + leaseDispositionFee.toFixed(2) + '';
resultHTML += 'Total Operating Costs (Maintenance + Insurance): $' + totalLeaseOperatingCosts.toFixed(2) + '';
resultHTML += 'Total Lease Cost: $' + totalLeaseCost.toFixed(2) + '';
resultHTML += '';
resultHTML += '
';
resultHTML += '
Purchase Scenario Costs:
';
resultHTML += 'Upfront Costs (Down Payment + Sales Tax + Registration): $' + totalPurchaseUpfrontCosts.toFixed(2) + '';
resultHTML += 'Total Loan Payments Made (' + Math.min(comparisonTermMonths, purchaseLoanTermMonths) + ' months): $' + totalLoanPaymentsMadeDuringComparison.toFixed(2) + '';
resultHTML += 'Total Operating Costs (Maintenance + Insurance): $' + totalPurchaseOperatingCosts.toFixed(2) + '';
resultHTML += 'Estimated Resale Value at end of ' + comparisonTermMonths + ' months: -$' + estimatedResaleValue.toFixed(2) + '';
if (remainingLoanBalance > 0) {
resultHTML += 'Remaining Loan Balance at end of ' + comparisonTermMonths + ' months: +$' + remainingLoanBalance.toFixed(2) + '';
}
resultHTML += 'Total Purchase Cost: $' + totalPurchaseCost.toFixed(2) + '';
resultHTML += '';
var difference = totalLeaseCost – totalPurchaseCost;
var summaryClass = ";
var summaryText = ";
if (difference 0) {
summaryClass = 'better-lease';
summaryText = 'Leasing is estimated to be $' + Math.abs(difference).toFixed(2) + ' cheaper than purchasing over ' + comparisonTermMonths + ' months.';
} else {
summaryClass = ";
summaryText = 'Leasing and Purchasing are estimated to cost about the same over ' + comparisonTermMonths + ' months.';
}
resultHTML += '
';
resultHTML += " + summaryText + ";
resultHTML += '
';
resultDiv.innerHTML = resultHTML;
}
Understanding the Car Lease vs. Purchase Decision
Deciding whether to lease or buy a car is a significant financial choice that depends heavily on your personal circumstances, driving habits, and financial goals. Both options have distinct advantages and disadvantages, and understanding them is key to making the best decision for you.
What is Car Leasing?
Leasing a car is essentially a long-term rental agreement. You pay to use the car for a set period (typically 2-4 years) and a specified mileage limit. At the end of the lease term, you return the car to the dealership. You don't own the car, and you don't build equity.
Pros of Leasing:
- Lower Monthly Payments: Lease payments are often lower than loan payments for the same car because you're only paying for the car's depreciation during the lease term, plus interest (money factor) and fees.
- New Car More Often: You can drive a new car with the latest features and safety technology every few years.
- Lower Upfront Costs: Down payments for leases are typically lower or sometimes non-existent compared to purchasing.
- Warranty Coverage: Most leases align with the manufacturer's warranty, meaning you're usually covered for major repairs.
- No Resale Hassle: At the end of the lease, you simply return the car (assuming you're within mileage limits and condition standards).
Cons of Leasing:
- No Ownership/Equity: You don't own the car and don't build equity.
- Mileage Restrictions: Exceeding your annual mileage allowance can result in significant per-mile fees.
- Wear and Tear Charges: You may be charged for excessive wear and tear when you return the vehicle.
- Continuous Payments: You'll always have a car payment if you continue to lease.
- Early Termination Fees: Breaking a lease early can be very expensive.
What is Car Purchasing?
When you purchase a car, you take out a loan to cover the cost (minus any down payment or trade-in) and eventually own the vehicle outright. You build equity over time as you pay down the loan.
Pros of Purchasing:
- Ownership and Equity: You own the car once the loan is paid off, and it becomes an asset.
- No Mileage Restrictions: Drive as much as you want without penalty.
- Customization: You can customize your car as you wish.
- Long-Term Savings: Once the loan is paid off, you have no monthly car payments, leading to significant savings over time.
- Resale Value: You can sell or trade in the car at any time and keep any equity.
Cons of Purchasing:
- Higher Monthly Payments: Loan payments are typically higher than lease payments for the same car.
- Higher Upfront Costs: Down payments, sales tax, and registration fees can be substantial.
- Depreciation: Cars lose value over time, and you bear the full brunt of this depreciation.
- Maintenance Costs: Once the warranty expires, you're responsible for all repair costs.
- Resale Hassle: Selling a used car can be time-consuming and involve negotiation.
How to Use the Calculator
This calculator helps you compare the total estimated costs of leasing versus purchasing a car over a specified comparison period. Input the details for both scenarios, including the car's MSRP, down payments, interest rates (for purchase) or money factors (for lease), fees, and estimated operating costs like maintenance and insurance.
- Car's MSRP: The sticker price of the vehicle.
- Comparison Period (months): The duration over which you want to compare the costs (e.g., 36 months for a typical lease term).
- Lease Down Payment: Any upfront cash paid to reduce the capitalized cost of the lease.
- Residual Value (% of MSRP): The estimated value of the car at the end of the lease, as a percentage of its original MSRP.
- Money Factor: The lease equivalent of an interest rate. Multiply by 2400 to get an approximate annual interest rate.
- Acquisition Fee: An administrative fee charged by the leasing company.
- Disposition Fee: A fee charged at the end of the lease when you return the car.
- Sales Tax Rate (on monthly payment): The sales tax applied to your monthly lease payment in your state.
- Purchase Down Payment: The upfront cash paid when buying the car.
- Loan Interest Rate (%): The annual interest rate on your car loan.
- Loan Term (months): The total duration of your car loan.
- Trade-in Value: The value of any vehicle you are trading in towards the purchase.
- Sales Tax Rate (on purchase price – trade-in): The sales tax applied to the purchase price (often after deducting trade-in value).
- Upfront Registration & Fees: One-time costs like license plates, title, and registration.
- Estimated Resale Value (% of MSRP): What you expect the car to be worth as a percentage of its MSRP at the end of the comparison period if you were to sell it.
- Monthly Maintenance/Insurance: Your estimated monthly costs for these ongoing expenses for both scenarios.
By inputting these details, the calculator will provide a clear breakdown of the total estimated costs for each option, helping you make an informed decision.