Lease vs. Buy Calculator
Compare the total cost of leasing — including buying the car for its residual at lease-end — against financing it over the same term.
Lease
Price to buy the car at lease-end.
Buy (finance)
- Due at signing
- $2,500
- 36 payments
- $14,364
- Residual buyout
- $18,000
- Down payment
- $2,500
- 36 payments
- $22,320
Buying is cheaper by $10,044 to own the car over 36 months.
Simplified cash comparison — excludes taxes, fees, insurance, and resale value.
These results are only as accurate as the figures you enter. Double-check every number against your actual contract.
Want the tax-adjusted lifetime cost?
The full Car Lease Checker applies your state's lease-tax method and reconciles the whole worksheet.
Check my full leaseFrequently asked questions
How do you compare leasing to buying fairly?
Compare total out-of-pocket cost over the same number of months. For leasing, that's the down payment plus every monthly payment. For buying, it's the down payment plus the loan payments over the same term. The catch is what you own at the end.
How does the residual buyout factor in?
At lease-end you can buy the car for its residual value. This tool adds that buyout to the lease total so you're comparing apples to apples — the cost to actually own the car either way.
Is buying always cheaper than leasing?
Not always. Leasing can cost less month to month, but if you buy out the residual you often pay more in total than financing the car outright, because you've also paid the lease rent charge. This calculator shows the gap in dollars.
Does this include taxes and fees?
This is a simplified cash-cost comparison of payments and buyout. It ignores taxes, fees, insurance differences, and resale value, which vary by state and situation. Use the full Car Lease Checker for a tax-adjusted lifetime cost.