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Buy vs Lease Calculator

Compare total out-of-pocket cost to finance and buy a vehicle versus leasing for the same number of months. Optional lease buyout at residual included when you plan to keep the car.

What this calculator is for

A lease vs buy calculator compares total cash out over the same number of months: lease payments plus drive-off and fees vs finance payments plus down on a purchase. Optional buyout adds residual to the lease column when you plan to keep the car at lease end.

Best for shoppers cross-shopping a new SUV lease payment against a 60-month loan on the same trim, and for business owners comparing mileage caps and wear charges mentally after the math.

A good outcome: you see which path costs less cash for the period you will actually keep the vehicle — not which has the lower monthly billboard number.

Calculator

How to use this calculator

  1. Set the same comparison period in months for both paths.
  2. Fill in lease cap cost, residual, money factor, drive-off, and acquisition fee.
  3. Fill in purchase price, down, trade credit, APR, and tax — optional buyout adds residual to lease total.

Lease money factor × 2,400 ≈ APR equivalent — compare to your loan APR for intuition.

Mileage overage, disposition fees, excess wear, and gap insurance are not in the totals — budget separately if you lease.

Purchase column should use the same sale price and tax assumptions as the lease cap cost for a fair fight.

The math: do it without a calculator

Lease total = (Monthly lease × months) + Drive-off + Fees [+ Residual if buying out]

Buy total = Down + (Monthly loan payment × months)

Lease mileage caps, wear charges, and gap insurance are not modeled — adjust mentally for your deal.

Lease base = depreciation (cap − residual) ÷ term + finance charge on (cap + residual) × money factor.

Buy total = down + (loan payment × months). Buyout adds residual to lease side when enabled.

Real-world examples

36-month SUV cross-shop

Same $45,000 cap cost, 58% residual, 0.00120 money factor, vs buy at 5.5% / 36 months with $4,000 down. Lease total cash is often lower at 36 months if you return the car; buy wins if you keep it years 4–10 with no payment.

Troubleshooting & fine-tuning your setup

Buy vs Lease Total Cost Still Feels Wrong

Lease totals exclude wear, mileage overage, and disposition fees unless you add them mentally. Buying assumes you keep the car after the loan — value at that point is not modeled as cash back unless you enter resale logic separately.

Compare the same calendar months you will actually keep the vehicle, not the lease turn-in date you might ignore.

Frequently asked questions

Buy vs Lease FAQs

Is leasing cheaper than buying?

Often lower cash flow for 36 months if you return the car. Buying wins if you keep vehicles 7–10 years after loans end.

What happens if I exceed lease miles?

You pay per mile over the cap — high-mileage drivers should buy miles upfront or choose to buy/finance instead.

Should I buy out my lease at the end?

Compare residual to market value. If the car is worth more than buyout, buying can be smart — add residual to lease total here when modeling buyout.

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