Lease Versus Buy Calculator
Buying or leasing a vehicle is one of the biggest financial decisions you'll make. While leasing may offer lower monthly payments, buying a car can be a better long-term investment. The Lease vs Buy Calculator helps you quickly compare costs and determine which option is more economical for your situation.
This tool provides a detailed breakdown of lease and purchase costs, including monthly payments, upfront fees, sales tax, interest, and resale value, so you can make an informed decision.
What Is a Lease vs Buy Calculator?
A Lease vs Buy Calculator is an online financial tool that compares the total costs of leasing versus buying a vehicle. It helps you answer questions like:
- Should I lease or buy this car?
- What will my total lease cost be including down payment and fees?
- How much will I pay in interest if I finance the car?
- How much can I save by choosing the cheaper option?
By inputting vehicle price, lease terms, loan details, and other variables, the calculator produces a clear recommendation along with estimated savings.
Key Features
- Lease Cost Breakdown – Includes monthly payments, upfront fees, and total lease cost.
- Buying Cost Breakdown – Shows monthly loan payments, total interest, down payment, taxes, and net cost after resale.
- Recommendation & Savings – Automatically identifies the better financial option and calculates potential savings.
- User-Friendly Interface – Easy-to-use fields with step-by-step input for lease and buy variables.
- Customizable Inputs – Adjust vehicle price, down payment, interest rate, lease term, fees, trade-in value, and resale value.
How to Use the Lease vs Buy Calculator
1. Enter Vehicle Information
- Input the vehicle price and sales tax rate.
2. Fill in Lease Options
- Lease term in months (usually 24–48 months).
- Monthly lease payment.
- Lease down payment and fees.
3. Fill in Buy Options
- Down payment.
- Loan term in months (e.g., 60 months).
- Interest rate (annual %).
- Trade-in value (if applicable).
- Estimated resale value of the car.
4. Calculate
Click Calculate to see:
- Lease Costs: monthly payment, total payments, upfront fees, and total lease cost.
- Buying Costs: monthly loan payment, total loan payments, total interest, sales tax, down payment, resale value, and net cost.
- Recommendation: whether leasing or buying is financially better.
- Savings: estimated money saved by choosing the cheaper option.
5. Reset
Click Reset to start over with new values.
Example Calculation
Scenario
- Vehicle Price: $30,000
- Sales Tax: 7%
- Lease Term: 36 months
- Monthly Lease: $350
- Lease Down + Fees: $1,500
- Buy Loan Term: 60 months
- Interest Rate: 5%
- Down Payment: $3,000
- Trade-In: $0
- Resale Value: $15,000
Results
- Total Lease Cost: $14,100
- Net Cost to Buy: $17,500
- Recommendation: Lease
- Savings: $3,400
This shows leasing may save money upfront while offering lower monthly payments.
Why Use This Calculator
- Avoid Financial Surprises – Understand total payments before signing a lease or loan.
- Quick Comparisons – Save hours of manual calculations.
- Plan Your Budget – See monthly payments and upfront costs clearly.
- Estimate Long-Term Value – Factor in resale value and interest to calculate net cost.
- Make Informed Decisions – Get an objective recommendation based on actual numbers.
15 Frequently Asked Questions (FAQs)
- What is the difference between leasing and buying?
Leasing is like renting a car for a fixed term, while buying gives you full ownership. - Can I include trade-in value in the calculation?
Yes, trade-in value reduces the cost of buying. - Does the calculator include taxes?
Yes, sales tax is factored into the buying cost. - Can I adjust the interest rate?
Yes, input your loan interest rate to calculate accurate monthly payments. - What if I plan to sell my car later?
Include the estimated resale value to see net buying costs. - Does the calculator account for lease fees?
Yes, you can enter any upfront fees associated with the lease. - Is this tool suitable for all vehicles?
Yes, whether it’s a car, SUV, or truck. - Can I compare different lease terms?
Yes, just adjust the lease term in months and recalculate. - Does it recommend the cheapest option automatically?
Yes, it shows the better financial option and estimated savings. - Can I use this for business or personal cars?
Yes, the calculator works for both personal and business vehicle decisions. - How accurate are the results?
Very accurate if you enter correct vehicle price, payments, interest, and taxes. - Can I calculate zero interest loans?
Yes, leave interest rate as 0% to calculate. - Is the monthly lease payment required?
Yes, the tool uses it to compute total lease costs. - Can I change vehicle price mid-calculation?
Yes, click reset and enter new price. - Why is knowing the net cost important?
It shows the total financial impact of buying, including down payment, interest, and resale value.
Conclusion
The Lease vs Buy Calculator is an essential tool for anyone considering a new vehicle. By comparing leasing and buying costs side by side, it helps you make a financially smart decision and plan your budget effectively.
Whether you’re looking for lower monthly payments, minimal upfront costs, or long-term investment value, this calculator makes the choice clear and shows exact savings for each option.