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Lease vs Buy Car Calculator

Find out whether leasing or buying a car saves more money over time.

Updated June 2026 · Editorial standards

Vehicle & Loan

$
$
%
mo
$
mo
$
%
yrs
%
Best Option
Buying
Savings vs Alt.
$1,675
Buy Monthly Payment
$587
Buy Net Cost
$25,312
Lease Total Cost
$29,000
Car Value at End
$14,907

Over 5 years: buying nets $25,312 (after $14,907 resale); leasing totals $29,000. Buying saves $1,675.Buying builds equity and is usually cheaper long-term. Leasing offers lower monthly payments and the latest model every few years. Factor in mileage limits and wear-and-tear fees when leasing.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the lease vs buy car calculator — which is cheaper??

In short

Buying a car is almost always cheaper long-term: after 5 years on a $35,000 vehicle, buying nets roughly $8,000–$12,000 less than perpetual leasing when you factor in the car's resale value. Leasing wins only when the down payment is invested at returns exceeding 7–8% annually.

Compares the true 5–10 year net cost of buying a car (loan payments minus resale value) vs. leasing (total lease payments including opportunity cost of the down payment you didn't pay).

How to use this calculator

  1. 1Enter vehicle price, down payment, loan rate, and loan term.
  2. 2Enter monthly lease payment, lease term, and lease down payment.
  3. 3Enter residual value % (shown on your lease quote).
  4. 4Set years to analyze and expected investment return on saved cash.

The formula

buyNet=totalPaid−residualValue
leaseNet=totalLeased+opportunityCost
Buy Net = TotalPaid − ResaleValue; Lease Net = TotalLeaseCost; Compare (Buy Net + oppCost) vs Lease Net
buyNet
— Total paid buying − resale value at end of period
leaseNet
— Total lease payments over analysis period
oppCost
— What the buy down payment would have earned if invested

Worked example

The scenario

$35,000 car, $5,000 down, 6.5% loan / 60 months, vs $450/mo lease / 36 months, 55% residual, 7% investment return, 5-year horizon.

gives

The result

Buy net cost ≈ $23,400 (after $12,500 resale). Lease total ≈ $29,000. Buying saves ~$5,600 over 5 years.

Common use cases

  • Decide between leasing your next car vs. financing it.
  • Compare the true cost of a lease deal vs. a purchase offer.
  • Factor in opportunity cost of the down payment.
  • Model how long you need to keep a car for buying to beat leasing.

Limitations & assumptions

  • Does not include insurance, maintenance, registration, or mileage overage fees.
  • Residual value and depreciation assumptions are estimates — actual resale varies by make/model.
  • Lease terms vary; some include free maintenance (raises lease value).
  • Tax treatment of lease vs. buy differs for self-employed and business use.

Frequently asked questions

Usually yes over 5+ years, because you build equity and pay off the loan. Leasing can win if you value always driving a new car, keep mileage low, or if the down payment would earn more invested than the equity you'd build in the car.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.