Lease vs Buy Calculator
Should you lease or buy your next car? Compare total costs, monthly payments, and long-term value side by side to make the smartest financial decision.
Lease vs Buy: Key Differences
Leasing means paying for a vehicle's depreciation over a set term, then returning it. Buying means financing the full price and owning the vehicle outright. Leasing typically has lower monthly payments but no equity at the end. Buying costs more monthly but you own an asset you can sell or trade. The right choice depends on how long you keep cars, your annual mileage, and whether you value ownership over flexibility. This calculator compares total costs over the same period to help you decide.
When Leasing Makes More Sense
Leasing works well if you prefer driving a new car every 2-3 years, drive fewer than 12,000-15,000 miles per year, want lower monthly payments, or need a vehicle for business deductions. Lease payments are typically 20-40% lower than loan payments. You avoid repair costs since the vehicle is under warranty. However, you face mileage penalties, wear-and-tear charges, and no equity. Over 10+ years, serial leasing usually costs more than buying and keeping a car.
When Buying Is the Better Deal
Buying wins if you plan to keep the car 5+ years, drive high mileage, or want to customize your vehicle. Once the loan is paid off, you have years of payment-free driving. The car retains resale value you can use toward your next purchase. Buying also avoids lease-end fees and mileage restrictions. The total cost of ownership is typically lower for buyers who keep vehicles 7-10 years compared to serial lessees over the same period.