Lease vs. Buy Auto Calculator

Leasing is essentially a long-term rental: you pay for the vehicle's depreciation and fees over the lease term and hand it back at the end, usually with lower monthly payments but nothing to show for it afterwards. Buying costs more per month (or a large sum upfront) but leaves you owning an asset you can keep or sell. The right choice depends on how long you keep cars and whether you value ownership or lower payments.

A car loses value fastest in its early years, and that depreciation is the single largest cost of ownership - larger than fuel or maintenance for most drivers. A lease effectively charges you for that early, steep depreciation and no more. Buying means you absorb the depreciation but also capture whatever value remains. Understanding depreciation is the key to seeing which option is genuinely cheaper over your time horizon.

Leasing often suits people who want a new car every few years, prefer predictable lower payments, and do not drive unusually high mileage. Buying, and especially keeping a car well past any loan, tends to be cheaper for people who hold vehicles for many years, because they enjoy years of use after the asset is paid off. This calculator compares the net cost so you can see where your situation falls.

It focuses on the main financial drivers - payments, depreciation, and fees - but real costs also include insurance differences, mileage penalties on leases, maintenance as a car ages, and your own convenience preferences. Use the output to understand the core trade-off, then adjust for the specifics of the deals in front of you.