Compare the total cost of ownership to find your best deal.
Buy with a Loan
Lease Option
Buying Total Cost
$0
Leasing Total Cost
$0
Lease vs. Buy: Which is Right for You?
Choosing between leasing and buying a car is one of the most significant financial decisions a driver makes. This car lease vs. buy calculator helps you break down the true costs beyond just the monthly payment.
The Financial Mechanics of Buying
When you buy a car with a loan, your monthly payments are higher because you are paying for the entire value of the vehicle plus interest. However, once the loan is paid off, you own the asset. The "Total Cost" in our calculator accounts for the total loan payments plus your down payment, minus the estimated resale value (equity) at the end of the term.
The Reality of Leasing
Leasing is essentially renting a car for its most "expensive" years—the first three or four years when depreciation is highest. You only pay for the difference between the car's current price and its predicted value at the end of the lease (the residual value), plus finance charges (money factor). While your monthly out-of-pocket cost is usually lower, you have no equity in the vehicle when the term ends.
Key Factors to Consider
Mileage: Leases usually limit you to 10,000–15,000 miles per year. Buying has no such restrictions.
Customization: If you like to modify your car, buying is the only option.
Wear and Tear: Lease contracts require you to return the car in excellent condition or pay penalties.
The "Everlasting Payment": If you lease continuously, you will always have a car payment. If you buy and hold, you may enjoy years of payment-free driving.
Example Calculation
Imagine a $35,000 car. Buying with 5.5% interest over 60 months with $5,000 down results in a payment of approximately $573/month. After 5 years, you've paid $39,380. If the car is worth $18,000 then, your net cost was $21,380. A lease might cost $450/month for 36 months with $2,500 down. Your total cost over 3 years is $18,700, but you have $0 in equity.
function calculateComparison() {
// Buy Inputs
var buyPrice = parseFloat(document.getElementById("buy_price").value) || 0;
var buyDown = parseFloat(document.getElementById("buy_down").value) || 0;
var buyRate = parseFloat(document.getElementById("buy_rate").value) || 0;
var buyTerm = parseInt(document.getElementById("buy_term").value) || 0;
var buyResale = parseFloat(document.getElementById("buy_resale").value) || 0;
// Lease Inputs
var leaseMonthly = parseFloat(document.getElementById("lease_monthly").value) || 0;
var leaseDown = parseFloat(document.getElementById("lease_down").value) || 0;
var leaseTerm = parseInt(document.getElementById("lease_term").value) || 0;
var leaseFees = parseFloat(document.getElementById("lease_fees").value) || 0;
// Loan Calculation
var principal = buyPrice – buyDown;
var monthlyRate = (buyRate / 100) / 12;
var buyMonthlyPayment = 0;
if (monthlyRate > 0) {
buyMonthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, buyTerm)) / (Math.pow(1 + monthlyRate, buyTerm) – 1);
} else {
buyMonthlyPayment = principal / buyTerm;
}
var totalLoanPayments = buyMonthlyPayment * buyTerm;
var totalBuyCost = (totalLoanPayments + buyDown) – buyResale;
// Lease Calculation
var totalLeaseCost = (leaseMonthly * leaseTerm) + leaseDown + leaseFees;
// Normalize to monthly cost for comparison
var monthlyBuyCost = totalBuyCost / buyTerm;
var monthlyLeaseCost = totalLeaseCost / leaseTerm;
// Update Results
document.getElementById("buy_total_result").innerText = "$" + totalBuyCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("buy_monthly_result").innerText = "Monthly Loan Payment: $" + buyMonthlyPayment.toFixed(2);
document.getElementById("lease_total_result").innerText = "$" + totalLeaseCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("lease_monthly_avg").innerText = "Effective Monthly Cost: $" + monthlyLeaseCost.toFixed(2);
// Show Results Section
document.getElementById("results_section").style.display = "block";
// Comparison Logic
var summaryText = "";
var buyCard = document.getElementById("buy_card");
var leaseCard = document.getElementById("lease_card");
// Compare based on monthly effective cost since terms might differ
if (monthlyBuyCost < monthlyLeaseCost) {
summaryText = "Buying is financially better in the long run, saving you approximately $" + (monthlyLeaseCost – monthlyBuyCost).toFixed(2) + " per month.";
buyCard.style.borderColor = "#2ecc71";
leaseCard.style.borderColor = "#e0e0e0";
} else {
summaryText = "Leasing is currently more cost-effective for your budget, saving you approximately $" + (monthlyBuyCost – monthlyLeaseCost).toFixed(2) + " per month.";
leaseCard.style.borderColor = "#2ecc71";
buyCard.style.borderColor = "#e0e0e0";
}
document.getElementById("comparison_summary").innerText = summaryText;
// Scroll to results smoothly
document.getElementById("results_section").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}