Vehicle EconomicsLease vs Buy Calculator
Compare leasing and buying the same vehicle over the same horizon, on total net cost, not just payment.
Why this comes up
Lease-vs-buy comparisons usually stop at "which payment is lower," and leasing almost always wins that framing. What it leaves out is that buying can end with you owning something worth real money, while a lease ends with nothing to show for it. This engine compares the two on total net cost over the same horizon, equity included.
How we calculated this
Lease net cost is upfront due-at-signing plus every monthly payment plus end-of-lease fees. Buy net cost is the down payment plus payments made minus the equity you'd still hold (resale value minus remaining loan balance) at the same horizon.
Worked example, using this page's own defaults (36-month horizon, $30,000 cap cost/price on both sides): the two paths land close together, run the calculator above to see which wins with your own resale and lease terms.
What this means
- A lower lease payment is not the same as a lower net cost, buying retains resale value that a lease simply doesn't give back.
- Your resale-value estimate drives the buy side heavily, if you're not confident in it, check a couple of real listings before trusting this comparison.
- If buying wins, Maximum Car Price From Monthly Budget or True Cost of Car Ownership can help you plan the purchase side in more detail.
Limitations
Resale value and end-of-lease fees are your own planning estimates, not a guaranteed contract or market figure. See Methodology.
Methodology
This engine combines Vehicle Economics' fixed-rate amortization model (the standard loan-payment formula run out as a full month-by-month schedule), ownership total cost model (every ownership cost, depreciation, financing, fuel, insurance, maintenance, repairs, and fees, summed over your horizon), lease payment and buyout model (cap cost, residual, and money factor split into a depreciation charge and a rent charge), and fuel and charging cost model (your own miles, MPG or kWh, and rates converted directly to a dollar cost). See Methodology for the full detail.