Car Lease vs Buy Calculator
Compare the total cost of leasing versus buying a car over the same period including payments, depreciation, and equity.
USD
USD
USD
months
%
Total Lease Cost
$12,600
Buy Cost (minus equity)$2,350
Equity After Buying$19,250
Total Lease Cost vs Monthly Lease Payment
Formula
## Leasing vs Buying a Car Leasing has lower monthly payments but builds no equity. Buying costs more monthly but you own an asset at the end. ### Comparison **Total Lease Cost = Monthly Payment x Term Months** (you own nothing at the end) **Net Buy Cost = Total Payments - Residual Value** (you keep the car) The true comparison is total lease outflow vs (total loan payments minus the car's remaining value). If the car retains value well, buying usually wins long-term.
Exemplo Resolvido
$35,000 car, $350/mo lease vs $600/mo loan, 36-month term, 55% residual.
- 01Total lease = $350 x 36 = $12,600 (nothing to show for it)
- 02Total loan payments = $600 x 36 = $21,600
- 03Car value at end = $35,000 x 55% = $19,250
- 04Net buy cost = $21,600 - $19,250 = $2,350
- 05Buying costs $10,250 less when accounting for equity