The lower monthly payment is not always the cheaper car decision. Leasing usually compresses the payment because you are paying for use, mileage, and depreciation during the lease term. Buying can cost more upfront, but it may leave you with equity and more flexibility if you keep the car longer.
Enter the lease offer, loan terms, down payment, mileage, fees, and expected resale value. The calculator compares total cost over the horizon you care about so the decision is based on the whole deal, not just the payment.
What you can do
- Lease payment and due-at-signing comparison
- Loan payment, interest, and down-payment modeling
- Mileage allowance and overage assumptions
- Resale value and equity at the end of the period
- Total cost comparison across your planned hold period
Frequently asked questions
Is leasing always more expensive than buying?
No. Leasing can be reasonable when you drive predictable mileage and want a newer car every few years. Buying usually improves when you keep the car well beyond the loan term or drive more than a lease allows.
Should I compare only monthly payments?
No. Compare the full period: cash due at signing, fees, interest or rent charges, mileage limits, maintenance assumptions, resale value, and whether you own anything at the end.
Ready to run the numbers?
The Car Buy vs Lease Calculator runs entirely in your browser. Free, no sign-up required to use it.
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