Lease vs Buy Car Calculator

Compare total cost of leasing vs buying a car. See which option saves more over the term.
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Lease Terms

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Buy / Finance Terms

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Total Lease Cost

$14,600.00

Total Buy Cost

$21,382.09

Better Option

Buy

Save $49.19/mo

Lease Breakdown

Down Payment$2,000.00
Monthly Payments (36 mo)$12,600.00
Total Lease Cost$14,600.00
Cost Per Month of Use$405.56

Buy / Finance Breakdown

Down Payment$5,000.00
Loan Amount$30,000.00
Monthly Payment$573.03
Total Interest Paid$4,382.09
Total Payments$39,382.09
Less: Residual / Resale Value- $18,000.00
Net Buy Cost$21,382.09
Cost Per Month of Use$356.37

Use the Lease vs Buy Car Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This calculator helps you determine whether leasing or buying a car is more cost-effective based on your specific financial situation and driving habits. With average new car prices reaching $48,000 in 2026 and lease rates fluctuating with interest rates, making the right choice can save you thousands of dollars over the vehicle's lifecycle.

The calculator compares the total cost of ownership by analyzing purchase price, down payment, loan terms, and depreciation against lease payments, fees, and potential purchase options. It factors in opportunity costs of capital, maintenance differences, and mileage restrictions to provide a comprehensive financial comparison over your intended ownership period.

Remember that leasing typically requires excellent credit for the best rates, and exceeding mileage limits can result in costly penalties of $0.15-$0.30 per mile. Consider your driving patterns carefully, as lease agreements usually cap annual mileage at 10,000-15,000 miles, and factor in the value of always having warranty coverage versus building equity through ownership.

Comparing a $35,000 Honda Accord: 3-Year Lease vs. Purchase

  1. 1 For a $35,000 Honda Accord, the lease option requires $2,500 down with monthly payments of $399 for 36 months, while purchasing requires $5,000 down with a $580 monthly payment over 60 months at 6.5% APR.
  2. 2 Calculate total lease cost: $2,500 + ($399 × 36) = $16,864 for three years. Calculate purchase costs for same period: $5,000 + ($580 × 36) = $25,880, minus the car's estimated value of $22,000 after three years.
  3. 3 The net cost of buying for three years is $25,880 - $22,000 = $3,880, significantly lower than the $16,864 leasing cost. However, this assumes you'll sell the car after three years and doesn't account for maintenance costs typically covered under lease warranty.
  4. 4 In this scenario, buying costs $12,984 more over three years but leaves you with a $22,000 asset, making purchasing the better long-term financial choice if you plan to keep the car beyond the lease term. Leasing makes sense if you prefer lower monthly payments, want to drive newer cars with latest technology, and don't mind not building equity.

Source: CFPB — Auto Loans · Last updated: April 2026

Frequently Asked Questions

Is it cheaper to lease or buy a car?
Leasing has lower monthly payments but you own nothing at the end. Buying costs more monthly but builds equity. Over 10+ years of ownership, buying is almost always cheaper because you can drive the car payment-free for many years after it is paid off.
What happens at the end of a car lease?
You have three options: return the vehicle and walk away, purchase the car at the predetermined residual value, or trade it in for a new lease. Be aware of excess mileage charges (typically $0.15-0.25/mile) and wear-and-tear fees at return.
What are the downsides of leasing a car?
Mileage limits (typically 10,000-15,000/year), no ownership equity, potential excess wear fees, early termination penalties, and you always have a car payment. You also cannot modify the vehicle and must maintain it per the lease agreement.

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