Lease vs Buy Calculator
Leasing against buying over the same period, on monthly cost and on what you are left with.
Leasing and buying are not the same purchase on different terms. Leasing buys the use of a car for a fixed period; buying buys the car, and at the end of the period you still own something.
Enter the lease terms and the purchase terms over the same number of years, and this calculator compares the monthly cost, the total outlay and what the car is worth at the end, so the comparison is between like and like.
At a glance
- What you enter
- Purchase price of the car, Lease payment per month, Lease upfront payment, Expected end-of-lease charges, Deposit if buying, Loan interest rate if buying, Years compared, Value the car keeps by the end, Servicing and repairs per year if buying
- What you get
- Total cost of leasing, Net cost of buying, Lease cost per month, Buying cost per month, Difference over the period
- Formula shown
- Yes - every step, right below your results.
- Cost and privacy
- Free, no account needed, and nothing you type is stored.
See worked examples ↓ Read the FAQ ↓ Share this calculator ↓
Results are estimates for general information only - always verify with a professional or official source before acting on them.
How to use the Lease vs Buy Calculator
- 1 Enter Purchase price of the car
- 2 Enter Lease payment per month
- 3 Enter Lease upfront payment
- 4 Enter Expected end-of-lease charges - Excess mileage and wear and tear.
- 5 Enter Deposit if buying
- 6 Enter Loan interest rate if buying
- 7 Enter Years compared (years)
- 8 Enter Value the car keeps by the end - What the car is worth at the end as a share of what you paid.
- 9 Enter Servicing and repairs per year if buying - A lease usually covers this while under warranty.
- 10 Press Calculate. You get Total cost of leasing, Net cost of buying, Lease cost per month, Buying cost per month, Difference over the period, and every intermediate step stays visible under “How is this calculated?”
- 11 Change one number at a time to see what moves the result - that is usually the most useful thing a calculator can tell you.
Worked examples
Real numbers run through this calculator. Open any example to load it into the form above and change it.
A $30,000 car leased at $340 against buying over four years
A $2,500 upfront payment, a $5,000 deposit, 6.5% finance and $700 a year of servicing.
You enter
- Purchase price of the car
- $30,000.00
- Lease payment per month
- $340.00
- Lease upfront payment
- $2,500.00
- Expected end-of-lease charges
- $500.00
- Deposit if buying
- $5,000.00
- Loan interest rate if buying
- 6.50%
- Years compared
- 4 years
- Value the car keeps by the end
- 55%
- Servicing and repairs per year if buying
- $700.00
You get
- Total cost of leasing
- $19,320.00
- Net cost of buying
- $19,757.94
- Lease cost per month
- $402.50
- Buying cost per month
- $411.62
- Difference over the period
- $437.94
The lease costs $16,320 in payments plus $3,000 upfront and at the end, so $19,320, or $402.50 a month, and it leaves you with nothing. Buying means a $25,000 loan at 6.5%, which is $592.87 a month and $28,457.94 over 48 months, plus the $5,000 deposit and $2,800 of servicing: $36,257.94 in total. The car is worth $16,500 at 55%, so the net cost of buying is $19,757.94, or $411.62 a month. Leasing costs $437.94 more over the four years.
A $22,000 car leased at $240 over six years
A lower payment and a smaller deposit, with the car keeping 35% of its price.
You enter
- Purchase price of the car
- $22,000.00
- Lease payment per month
- $240.00
- Lease upfront payment
- $1,200.00
- Expected end-of-lease charges
- $250.00
- Deposit if buying
- $4,000.00
- Loan interest rate if buying
- 4.50%
- Years compared
- 6 years
- Value the car keeps by the end
- 35%
- Servicing and repairs per year if buying
- $450.00
You get
- Total cost of leasing
- $18,730.00
- Net cost of buying
- $19,572.74
- Lease cost per month
- $260.14
- Buying cost per month
- $271.84
- Difference over the period
- $842.74
Sixty payments of $240 come to $17,280, and with $1,200 upfront and $250 at the end the lease costs $18,730, or $260.14 a month. Buying means an $18,000 loan at 4.5%, which is $285.73 a month and $20,572.74 over 72 months, plus the $4,000 deposit and $2,700 of servicing: $27,272.74. The car is worth $7,700 at 35%, so the net cost of buying is $19,572.74, or $271.84 a month. Leasing costs $842.74 more, and the smaller residual is what makes buying the cheaper option here.
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Frequently asked questions
Is the upfront lease payment included in the total?
Yes. The lease total is the monthly payment multiplied by the months, plus the upfront payment, plus any end-of-lease charges you expect. A $340 payment over 48 months is $16,320, and with $2,500 upfront and $500 of end charges the lease costs $19,320 in total, which is $402.50 a month rather than the advertised $340.
That effective monthly figure is the one to compare with the monthly cost of buying, because both are then spread across the same months and include the money paid at the start. Comparing an advertised lease payment with a loan payment is comparing two different things.
Why is the car value at the end subtracted from the cost of buying?
Because the car is still yours and can be sold. The deposit and the loan payments are real money spent, but the car holds part of it, so the net cost of buying is the total paid minus what the car is worth at the end. A $30,000 car bought with a $5,000 deposit and $700 a year of servicing costs $36,257.94 over four years, and if it is worth $16,500 at the end the net cost is $19,757.94.
The residual share is the assumption that decides the answer, so set it from real listings for your model rather than from hope. A share that is too high makes buying look better than it is, and a share that is too low does the opposite.
Why is servicing only counted on the buying side?
Because a new lease usually includes servicing and repairs while the car is under warranty, and the lease payment already reflects that. The field exists so you can enter what you would actually pay as an owner. If your lease requires you to pay for servicing or tyres, add an equivalent amount to the lease end charges so the comparison stays honest.
Tyres, brakes and anything the warranty refuses to cover are the usual gaps. A lease with a mileage cap you will exceed is a different deal again, because the excess mileage charge per mile often costs more than the depreciation on those same miles would have.
What happens if I keep the car longer than the loan term?
This page compares the two options over the same number of years, which is what makes the answer meaningful. After the loan is paid off the comparison changes completely: the owner keeps driving a car that has already lost most of its value, while the leaseholder starts a new lease with a new upfront payment.
If you usually keep cars for eight or ten years, run the comparison over that period instead, and reduce the residual share to match. A car kept for eight years keeps a smaller share of its price, but it also has no payment for the last few of them.