Car Lease vs Buy Calculator (Free)
Estimate monthly payments, total cost of ownership, and effective monthly cost for both leasing and buying the same vehicle. Model taxes, fees, residual value, and resale assumptions — no data ever leaves your browser.
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What’s Cheaper Over The Term?
Monthly Payment and Total Cost Comparison
Lease payments include depreciation and finance charges on the adjusted capitalized cost. Buying integrates loan amortization, taxes & fees, and resale assumptions at the end of the shared term. Choose the tax method that matches your state or province: taxing monthly payments or paying tax upfront on the adjusted cap cost.
- Effective monthly cost (EMC) spreads the total term cost over the lease length.
- Residual values are set by the leasing bank; resale values depend on market demand.
- Insurance, maintenance, and registration costs vary widely and are excluded here.
FAQ
What is money factor?
The money factor is the lease financing charge. Multiply it by 2400 to estimate the equivalent APR. A lower money factor means less finance cost each month.
How is residual used?
Residual value is the expected vehicle value at lease end, expressed as a percentage of MSRP. It determines the depreciation portion of the lease payment.
Why does tax method change payment?
Some regions tax each monthly payment, while others charge sales tax upfront on the adjusted cap cost. Switching the method updates the monthly payment and total cost to match your local rules.
How do you estimate resale value?
Enter a percentage of the purchase price based on market guides or past data. The calculator subtracts that future resale value from the buy total cost to reflect money recovered when you sell the car.