CarLoanMath
⚖️ Financial Calculator

Lease vs Buy Calculator

Enter the price, lease terms, and loan terms to see the true 3-year cost of each path, resale included.

How the lease vs buy calculator works

Why 3-year comparisons mislead without resale

Lease payments look small because you pay only depreciation plus a rent charge. The honest comparison credits the buy path with the car's resale at the same milestone — do that, and buying usually wins on pure cost unless the lease was negotiated at a big discount or the model holds value unusually well.

What leasing genuinely buys

Lower payments, warranty coverage throughout, a new car every three years, and no resale hassle — for a real premium and a permanent payment. For business users, high-mileage drivers who value predictability differently, and people who genuinely want the newest safety tech, the premium can be rational. The mistake is calling it "cheaper."

Reading a lease like a buyer

Three numbers run every lease: capitalized cost (negotiate it like a purchase price!), residual (%), and money factor (the APR in disguise — multiply by 2,400). A great lease is a well-negotiated cap cost with a high residual and low money factor. The monthly number alone tells you none of that.