Why would leasing ever cost more if the monthly payment is lower?

A lease payment is lower because you're only paying for the vehicle's depreciation during the lease term, not the full price — but you also never build equity or stop paying, and re-leasing means a new signing fee each time, unlike a loan that eventually ends.

What resale value should I use for the 'buying' side?

A conservative estimate based on the vehicle's typical depreciation curve for its make and model — check a resale-value tool for a specific vehicle rather than guessing, since this assumption meaningfully affects the comparison.

Is buying always better long-term?

Usually, the longer you keep the vehicle past loan payoff, since you stop paying while still holding a real asset — but leasing can still make sense for drivers who value having a new, warrantied vehicle every few years and don't want resale hassle.

All tools

Finance

Lease vs. Buy Calculator

Compare the total cost of leasing a car versus buying one.

🔒 Runs entirely in your browser — nothing here is ever uploaded

About the Lease vs. Buy Calculator

Compares the total out-of-pocket cost of leasing a car versus buying one over the same number of years, accounting for the buy side's resale value and the lease side's recurring signing fees.

How to use it

Enter the number of Years to compare.
Under Buying, enter the vehicle price, down payment, loan rate and term, and an estimated resale value at the end of the comparison period.
Under Leasing, enter the monthly lease payment, the due-at-signing fee, and the lease term.
Read the total cost of each option, and which one saves money, in the result panel and chart.

Formula

Cost of buying = down payment + (loan payments made during the comparison period) − estimated resale value at the end
Cost of leasing = (monthly lease payment × months compared) + (due-at-signing fee × number of lease signings needed to cover that period)

If the comparison period is longer than one lease term, this assumes you re-lease at the same monthly payment and fee each time — real-world lease pricing changes between terms, so treat a multi-lease comparison as a rough estimate, most reliable when the comparison period is close to a single lease term.

Worked example

Comparing 4 years: buying a $32,000 car with $3,000 down, financed at 7.5% over 60 months, minus a $14,000 resale value, costs less out of pocket than leasing at $400/month with a $2,500 signing fee every 36 months (which requires 2 signings across 4 years) — the exact gap depends on your own numbers.

Recommendations

• Buying tends to win financially the longer you keep the vehicle past the loan's payoff point, since you stop making payments while still holding a depreciating but real asset.
• Leasing tends to suit drivers who want a new car every few years and don't want to manage resale — but it usually costs more over a long time horizon precisely because you never stop paying and never build equity.
• Mileage limits and wear-and-tear charges are real lease costs not modeled here — factor in your actual annual mileage if you drive more than a typical lease's 10,000-12,000 mile/year allowance.

Frequently asked questions

No — this compares base costs only. Leases typically cap annual mileage (often 10,000-12,000 miles) with a per-mile charge for going over, which can add real cost if you drive more than that.