Lease vs Buy Calculator
Updated
Lease vs buy depends on horizon, mileage, depreciation, rates, and incentives. We compare both side-by-side.
Leasing typically wins on monthly payment but builds no equity and carries mileage limits. Buying typically wins over long horizons because you keep the residual value. The honest answer depends on your horizon, miles per year, financing rate, residual, and incentives.
Estimate only. Estimate only. Not a loan offer, lender quote, dealer quote, lease agreement, retail installment sales contract, DMV estimate, or financial advice. Actual rates, payments, taxes, fees, incentives, residual values, insurance, fuel, and maintenance costs may vary.
Comparison setup
Buy
Lease
Buy
$1,498.07/mo
Includes sales tax (financed into the loan).
Total cost (incl. equity): $51,301.40
- Monthly payments (60 × $1,498.07)
- $89,884.20
- Upfront cash
- $715.00
- Less estimated vehicle value at year 5
- −$39,297.80
Total interest: $2,024.79
Sales tax: $6,919.41
8.63% × $80,225.00 vehicle price, financed into the loan. You also pay interest on this amount.
Upfront cash: $715.00
- Down payment
- $0.00
- Documentation & dealer fees
- $85.00
- Registration fees
- $630.00
For verdict comparison
39-mo net cost (sell at lease end): $42,429.41
- Monthly payments (39 × $1,498.07)
- $58,424.73
- Upfront cash
- $715.00
- + Loan payoff at month 39
- $30,750.79
- − Vehicle value at month 39
- −$47,461.11
Models: pay 39 months on your 60-month loan, then sell the car. Cash spent plus what you still owe, minus what the car is worth. Compare directly to the lease's 39-month total cost.
Lease
$1,380.63/mo
Lease monthly includes sales tax on each payment.
Total cost over lease (39 mo): $55,484.57
- Monthly payments (39 × $1,380.63)
- $53,844.57
- Sign-on costs (acquisition + dealer + reg + down)
- $1,640.00
This is the cash you actually hand over for the 39-month lease. At lease end you return the car; no further payments.
Total finance charges: $8,619.00
Cost of money over 39 months — already included in your monthly payments.
Residual value at end of lease (39 mo): $40,914.75
Returned to the leasing company; not your equity (unlike a buy).
Sales tax over lease (39 mo): $4,275.18
Treatment: tax on each monthly payment (8.63%).
Due at signing: $3,020.63
- Down payment / cap cost reduction
- $0.00
- Acquisition fee
- $925.00
- Dealer fees
- $85.00
- Registration fees
- $630.00
- First month payment
- $1,380.63
For verdict comparison
5-yr net cost (buy residual at lease end): $60,630.42
- Lease cost (39 mo)
- $55,484.57
- + Residual buyout at lease end
- $40,914.75
- + Sales tax on residual (8.63%)
- $3,528.90
- − Vehicle value at year 5
- −$39,297.80
Models: at lease end, buy the car at residual + sales tax, then own it through the rest of the horizon. Both scenarios end with the same depreciated vehicle, making the buy-vs-lease verdict fair.
Alternative: walk away at lease end and pay nothing further — saves the $44,443.65 buyout but you have no car for the remaining 21 months.
Lower estimated total cost
Buy
info: Lease vs buy depends on assumptions
Results vary heavily with horizon length, depreciation, mileage, rates, residual value, and incentives. Treat as an estimate.
Assumptions usedv2026-06-18
- Horizon5 years
- End-of-lease assumptionBuy out the residual + sales tax
Lease vs Buy
Car Finance Tools · https://carfinancetools.com
Generated: 2026-06-19T00:48:13.893Z · Assumptions version: 2026-06-18
Inputs
- Horizon
- 5 years
- Sales tax rate
- 8.63%
- Buy price
- $80,225.00
- Buy down payment
- $0.00
- Buy APR
- 0.90%
- Buy term
- 60 months
- Buy doc & dealer fees
- $85.00
- Buy registration fees
- $630.00
- Lease MSRP
- $80,225.00
- Lease selling price
- $80,225.00
- Lease cap cost reduction
- $0.00
- Residual %
- 51%
- Money factor
- 0.00180
- Lease acquisition fee
- $925.00
- Lease dealer fees
- $85.00
- Lease registration fees
- $630.00
Results
- Buy monthly
- $1,498.07
- Lease monthly
- $1,380.63
- Buy total cost
- $51,301.40
- Lease total cost
- $55,484.57
- Lower total cost
- buy
Estimate only. Not a loan offer, lender quote, dealer quote, lease agreement, retail installment sales contract, DMV estimate, or financial advice. Actual rates, payments, taxes, fees, incentives, residual values, insurance, fuel, and maintenance costs may vary.
How this is calculated
We sum buy payments to the horizon (capped at the loan term), add up-front cash, and subtract estimated equity (estimated value − remaining loan). For lease, we sum lease cost across required lease cycles to fill the horizon. No universal winner is declared without strong assumptions.
For when each side tends to win, read our lease vs buy guide.
Comparing a real dealer lease offer? The advertised payment hides the money factor — back it out with the lease money factor calculator before plugging it in here.
Frequently asked questions
- Is leasing always cheaper monthly?
- Often, yes — but you don't build equity, and mileage limits and excess-mileage charges can change the picture.
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