🚗 Auto Updated2026-07-19
Lease vs Buy Calculator.
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Quick answer
Compare total cost over the lease term. A 30,000 car financed with 3,000 down at 7% over 60 months costs about 10,247 over 36 months (after a 12,000 resale) versus 14,600 to lease at 350/mo, so buying saves 4,353. Enter your own numbers below.
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Lease vs Buy Calculator
Over 36 mo
🏦 Buy (finance)
📄 Lease
Cheaper over 36 months
Buying saves 4,353
Buy finance payment ≈ 535 / mo over 60 months.
Buy total
Cheaper10,247
3,000 down + 19,247 payments − 12,000 resale
Lease total
14,600
2,000 down + 350 × 36 mo (own nothing at end)
✨ Live · Simplified: ignores taxes, fees, maintenance, insurance and the time value of money. Leasing suits frequent upgrades; buying suits long-term keepers.
📊 Quick reference
Worked example on the defaults.
Buy: 30,000 car, 3,000 down, 7% APR, 60-month loan (payment ≈ 535/mo), 12,000 resale. Lease: 350/mo, 2,000 drive-off. Compared over the 36-month lease term.
| Over 36 months | Buy (finance) | Lease |
|---|---|---|
| Up-front (down / drive-off) | 3,000 | 2,000 |
| Payments over 36 mo | 19,247 | 12,600 |
| Resale value returned | −12,000 | 0 |
| Net total cost | 10,247 | 14,600 |
On these defaults, buying is cheaper by 4,353 over 36 months, because you keep a car worth 12,000 at the end.
❓ FAQ
Common questions.
Is it cheaper to lease or buy a car?
It depends on how long you keep the car and its resale value. Using the calculator defaults (a 30,000 car financed with 3,000 down at 7% over 60 months versus a lease of 350/month with 2,000 drive-off), over the 36-month lease term buying costs about 10,247 while leasing costs 14,600. Buying is cheaper by roughly 4,353, mainly because you still own an asset worth 12,000 at the end. Change the resale value or lease payment and the answer can flip.
How is the total cost of buying calculated?
First the monthly payment is found by amortizing the amount financed (price minus down payment). For the defaults that is 27,000 financed at 7% over 60 months, giving a payment of about 535 per month. Over the 36-month comparison horizon you pay 535 × 36 = 19,247, add the 3,000 down payment, then subtract the 12,000 resale value because you own the car at the end. That nets to 10,247.
How is the total cost of leasing calculated?
Leasing is simpler: you pay the drive-off amount up front plus the monthly payment for every month of the lease, and you own nothing at the end. For the defaults that is 2,000 drive-off + 350 × 36 months = 14,600. There is no resale value to subtract because the car goes back to the dealer, which is why leases often look cheap month-to-month but cost more over a full ownership cycle.
Why does resale value matter so much?
Resale (residual) value is the single biggest lever in a lease-versus-buy decision. When you buy, the resale value is money you get back, so it is subtracted from your total cost. In the default example the 12,000 resale is what makes buying win. Without it, buying would cost 22,247 instead of 10,247. Cars that hold value reward buyers; cars that depreciate fast make leasing relatively more attractive.
What does this calculator leave out?
This is a simplified total-cost comparison. It ignores sales tax and registration, dealer and acquisition fees, maintenance and repairs, insurance differences, mileage overage charges on leases, and the time value of money (a payment made today costs more than the same payment made in three years). Leasing generally suits drivers who upgrade every few years and want lower monthly outlay and warranty coverage; buying suits people who keep cars long after the loan is paid off.
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