BuyingvsLeasing
Lease vs Buy Car Calculator
Enter the car's price, your loan terms, and the lease you're comparing it to. The verdict compares leasing's fixed cost over its term against buying's cost net of resale value -- at the lease term, or over however long you'd actually own the car.
The car
What you could sell the car for at the end of the comparison horizon below.
Buying costs $8,742 less, over the 36-month lease term
That's $252/month equivalent to buy versus $495/month to lease, resale and fees included.
Leasing's cost is pinned to its own lease term -- you'd sign a new lease after that. Stretch this slider past the lease term to see buying's cost over a longer ownership period; lower the resale value input to match the extra wear.
| Buying | Leasing | |
|---|---|---|
| Loan amount / lease term | $32,000 | 36 mo |
| Monthly payment | $626 | $420 |
| Total cost, buy@36mo / lease@36mo | $9,078 | $17,820 |
| Equivalent monthly cost | $252 | $495 |
How this is calculated
Buying's total cost = down payment + sales tax + loan payments made through the ownership horizon − the car's resale value at that point. The loan payment uses the standard amortization formula; payments stop once the loan is paid off even if the horizon runs longer.
Leasing's total cost = due at signing + monthly lease payments for the full lease term + an estimated mileage-overage fee. There's no resale credit, because you don't own the car at the end.
The two are pinned to different time windows on purpose: leasing to its own term (you'd sign a new lease after), buying to whatever ownership horizon you set with the slider above -- which is what lets you see buying's advantage grow the longer you'd actually keep the car.
Frequently Asked Questions
Why does buying win here even though the monthly loan payment is higher than the lease?
Because at the end of the 36-month term, the buyer still owns a car worth an estimated $19,000 -- the lease payment buys nothing but usage. Over the 36 months, buying's total cost nets to $9,078 after resale, against $17,820 for leasing, a $8,742 gap.
Does this include sales tax?
Yes, on the purchase price for buying ($2,538 at 7.25% here). Lease sales tax varies a lot by state -- some tax only the monthly payment, some the full price upfront -- so if your state taxes lease payments, add that amount into the lease-monthly input yourself.
What happens if I keep the car after the lease term would have ended?
Buying's advantage grows. Stretch the ownership-horizon slider to 60 months with a lower resale value (say $14,000 instead of $19,000, reflecting two more years of wear) and the total cost of owning becomes $29,105 -- spread over more months, well below the cost of two back-to-back 36-month leases.
What's not captured here?
Maintenance and repair costs beyond warranty (leasing usually stays within factory warranty; owning past it doesn't), the resale-value estimate's real uncertainty, and financing rate differences some manufacturers offer specifically to boost lease volume. A subsidized lease rate can change this verdict even when the sticker math otherwise favors buying.
Why would anyone lease if buying is usually cheaper?
Lower monthly payment for the same car, a warranty-covered vehicle the whole term, no resale-value risk, and the option to walk away and drive something new every few years. Those are real value, just not ones this cost calculator prices in -- it only answers the dollars question, not the preference question.
How is the mileage overage fee handled?
As a flat estimate added to the total lease cost. If you're not sure you'll stay under your lease's mileage cap, estimate the overage honestly (most leases charge 15-30 cents per mile over) rather than leaving it at zero -- exceeding the cap is one of the most common ways a lease ends up costing more than planned.
SidebySideCalc calculators apply standard, published formulas -- loan amortization, future-value-of-annuity, and deductible/coinsurance cost-sharing math -- to the numbers you enter. They are estimates for comparing two paths, not tax, legal, or financial advice: your lender, plan documents, and a tax professional decide the real figures for your situation.