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🚗 Should I Lease or Buy a Car?

A true total-cost comparison — not just monthly payment vs monthly payment.

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Lease vs Buy Car Calculator

Total cost comparison over the same period

Your Numbers
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$
mo
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The Numbers
Better Option
Total Lease Cost
Total Buy Cost (same period)
Car Value at End of Period
Net Buy Cost (after resale)
Our Recommendation
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Scenario Analysis

Buy — Keep 10 Years
Total cost buying and keeping for 10 years
Your Comparison
Over the lease term period
Lease — 3 Cycles
Leasing 3 consecutive terms (9 years)

Personalized Insights

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The Real Difference Between Leasing and Buying

A lease payment is lower than a loan payment for the same car because you're only paying for the depreciation during the lease term, not the full vehicle value. That sounds appealing until you realise you also end up with nothing at the end — you then face another payment for your next car, indefinitely.

Long-term, buying almost always wins financially — especially if you keep a car past its loan payoff. The years of driving payment-free after a loan is paid off are where buying's advantage compounds dramatically versus perpetual lease payments.

Leasing makes more sense for specific situations: businesses that deduct lease payments, drivers who want a new car every 3 years, people with variable income who need lower fixed monthly costs, or those whose needs may change and value flexibility over ownership.

01
Enter Your Numbers
Car price, lease payment, term and loan rate.
02
See True Total Cost
Both options compared over the same period.
03
Review Long-Term
How costs diverge over 10 years.
04
Make the Call
Based on your situation, not just the monthly.

Frequently Asked Questions

Is leasing ever the better financial choice?
Rarely for most consumers — buying and keeping a car long-term almost always wins on total cost. Exceptions: business owners who can deduct lease payments, or people who genuinely need flexibility and would sell after 2-3 years anyway.
What happens at the end of a lease?
You return the car and either lease again, buy the car at the predetermined residual value, or walk away. Excessive mileage or damage incurs additional charges. If the car is worth more than the residual, you may be able to profit by buying and reselling.
Can I buy out my lease early?
Usually yes, but the buyout price is typically the residual value plus remaining payments — often more than the car's market value in the early months. Check your specific lease agreement for early termination costs.
What mileage limit should I negotiate?
Standard leases come with 10,000-12,000 miles/year. Excess mileage fees run $0.15-0.30 per mile, which adds up fast. Negotiate your actual expected mileage upfront — buying extra miles before signing is cheaper than paying overage at return.

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