.calc-container { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 20px auto; border: 1px solid #e1e1e1; border-radius: 8px; background-color: #ffffff; color: #333; box-shadow: 0 4px 6px rgba(0,0,0,0.1); }
.calc-header { background-color: #1a73e8; color: white; padding: 20px; border-radius: 8px 8px 0 0; text-align: center; }
.calc-body { padding: 25px; }
.calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; }
@media (max-width: 600px) { .calc-grid { grid-template-columns: 1fr; } }
.input-group { margin-bottom: 15px; }
.input-group label { display: block; font-weight: 600; margin-bottom: 5px; font-size: 14px; color: #555; }
.input-group input { width: 100%; padding: 10px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; font-size: 16px; }
.calc-btn { width: 100%; padding: 15px; background-color: #1a73e8; color: white; border: none; border-radius: 4px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background 0.3s; margin-top: 10px; }
.calc-btn:hover { background-color: #1557b0; }
.results-area { margin-top: 25px; padding: 20px; border-radius: 6px; background-color: #f8f9fa; border-left: 5px solid #1a73e8; }
.res-row { display: flex; justify-content: space-between; margin-bottom: 10px; padding-bottom: 5px; border-bottom: 1px solid #eee; }
.res-val { font-weight: bold; color: #1a73e8; }
.summary-box { text-align: center; margin-top: 15px; font-size: 18px; font-weight: bold; color: #2e7d32; }
.article-section { line-height: 1.6; color: #444; margin-top: 30px; }
.article-section h2 { color: #222; border-bottom: 2px solid #1a73e8; padding-bottom: 5px; }
.article-section h3 { margin-top: 20px; color: #333; }
.example-box { background: #fffde7; border: 1px solid #fff59d; padding: 15px; border-radius: 4px; margin: 15px 0; }
function calculateLeaseVsBuy() {
var carPrice = parseFloat(document.getElementById("carPrice").value) || 0;
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var loanRate = parseFloat(document.getElementById("loanRate").value) || 0;
var loanTerm = parseFloat(document.getElementById("loanTerm").value) || 1;
var resValue = parseFloat(document.getElementById("residualValue").value) || 0;
var leaseMonthly = parseFloat(document.getElementById("leaseMonthly").value) || 0;
var leaseTerm = parseFloat(document.getElementById("leaseTerm").value) || 1;
var leaseDown = parseFloat(document.getElementById("leaseDown").value) || 0;
var taxRate = parseFloat(document.getElementById("salesTax").value) || 0;
// Loan Calculation
var principal = carPrice – downPayment;
var monthlyRate = (loanRate / 100) / 12;
var monthlyLoanPmt = 0;
if (monthlyRate > 0) {
monthlyLoanPmt = principal * (monthlyRate * Math.pow(1 + monthlyRate, loanTerm)) / (Math.pow(1 + monthlyRate, loanTerm) – 1);
} else {
monthlyLoanPmt = principal / loanTerm;
}
// Add Sales Tax to initial costs for Buying
var totalTax = carPrice * (taxRate / 100);
var totalCostBuy = (monthlyLoanPmt * loanTerm) + downPayment + totalTax – resValue;
// Lease Calculation
var totalCostLease = (leaseMonthly * leaseTerm) + leaseDown;
// Adjust Lease to same timeframe as Buy for fair comparison if terms differ
// We normalize to the longer of the two terms for cost-per-month logic
var buyMonthlyEffective = totalCostBuy / loanTerm;
var leaseMonthlyEffective = totalCostLease / leaseTerm;
document.getElementById("resMonthlyLoan").innerHTML = "$" + monthlyLoanPmt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotalBuy").innerHTML = "$" + totalCostBuy.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotalLease").innerHTML = "$" + totalCostLease.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var summary = document.getElementById("comparisonResult");
if (buyMonthlyEffective < leaseMonthlyEffective) {
var diff = leaseMonthlyEffective – buyMonthlyEffective;
summary.innerHTML = "Buying is more cost-effective! You save approximately $" + diff.toLocaleString(undefined, {maximumFractionDigits: 0}) + " per month long-term.";
summary.style.color = "#2e7d32";
} else {
var diff = buyMonthlyEffective – leaseMonthlyEffective;
summary.innerHTML = "Leasing is more cost-effective! You save approximately $" + diff.toLocaleString(undefined, {maximumFractionDigits: 0}) + " per month during the term.";
summary.style.color = "#d32f2f";
}
document.getElementById("results").style.display = "block";
}
Car Lease vs. Buy Calculator: Which is the Smarter Financial Move?
Deciding whether to lease or buy a car is one of the most significant financial decisions for many households. While buying gives you equity and ownership, leasing offers lower monthly payments and the ability to drive a new vehicle every few years. This calculator helps you break down the true cost of both options by factoring in depreciation, interest rates, and resale values.
Understanding the Difference
When you buy a car, you are paying for the entire value of the vehicle over time. Once the loan is paid off, you own the asset, which still has residual value. When you lease a car, you are essentially paying for the vehicle's depreciation during the time you drive it, plus interest and fees.
Pros and Cons of Buying
- Pros: Full ownership, no mileage limits, no "wear and tear" charges, and the ability to sell or trade-in the vehicle later.
- Cons: Higher monthly payments, larger down payment requirements, and the risk of value loss due to depreciation.
Pros and Cons of Leasing
- Pros: Lower monthly payments, lower upfront costs, usually covered by manufacturer warranty, and always driving a modern car.
- Cons: No equity at the end of the term, mileage restrictions (usually 10,000–15,000 miles/year), and potential fees for excessive wear.
How This Calculator Works
The calculator compares the Total Cost of Ownership. For buying, it calculates your monthly loan payment based on the purchase price and interest rate, then subtracts the estimated resale value at the end of the term. For leasing, it totals the monthly payments and the initial drive-off costs.
Example Comparison:
Imagine a $35,000 car.
Buying: $5,000 down, 4.5% APR for 60 months. Your payment is ~$559/mo. After 5 years, you've paid ~$38,500. If the car is worth $15,000, your net cost is $23,500.
Leasing: $2,000 down, $400/mo for 36 months. Total cost for 3 years is $16,400. To compare to 5 years, the effective cost is higher than buying if you continue to lease back-to-back.
Key Factors to Consider
1. Depreciation
New cars lose about 20% of their value in the first year and roughly 60% after five years. If you buy a car that holds its value well (like a Toyota or Subaru), buying is almost always the better financial choice.
2. Annual Mileage
If you drive more than 15,000 miles per year, leasing becomes very expensive due to "overage fees," which can range from $0.15 to $0.30 per mile. High-mileage drivers should almost always buy.
3. Taxes and Fees
Depending on your state, sales tax might be applied to the full purchase price (when buying) or only on the monthly payment (when leasing). This calculator allows you to input your local tax rate to see how it affects the bottom line.
Conclusion: Which should you choose?
If your goal is to minimize long-term costs and build an asset, buying is the winner. If you prioritize cash flow (lower monthly payments) and want the latest safety technology every three years without the hassle of selling a used car, leasing might be worth the premium.