Your numbers
Quick answer
What does the Lease vs buy calculate?
Which is cheaper for your term and mileage? This calculator uses lease monthly payment, lease due at signing, purchase price, estimated resale value, loan interest over period, and comparison period to estimate three-year vehicle comparison immediately in your browser.
With the values currently entered, the result is Buying — has the lower estimated cost. It also shows lease cost, buy cost after resale, and difference.
How to use the Lease vs buy
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Lease monthly payment
- Lease due at signing
- Purchase price
- Estimated resale value
- Loan interest over period
- Comparison period — entered in months
Lease vs buy formula
Lease payments + due-at-signing versus depreciation + finance interest
Assumptions
- Operating costs are equal and excluded.
- Lease mileage and condition fees are excluded.
Practical guide
Lease vs buy example and edge cases
Which is cheaper for your term and mileage? Let's use a concrete example, then look at the assumptions that can move the answer.
Example: A practical lease vs buy scenario
For this example, use lease monthly payment of 520, lease due at signing of 3,500, purchase price of 38,000, estimated resale value of 25,000, loan interest over period of 3,600, and comparison period of 36 months. These are starting values, so replace them with numbers that match your situation.
- Lease monthly payment
- 520
- Lease due at signing
- 3,500
- Purchase price
- 38,000
- Estimated resale value
- 25,000
- Loan interest over period
- 3,600
- Comparison period
- 36 months
Calculated resultBuyinghas the lower estimated cost
Start with has the lower estimated cost. Then check lease cost, buy cost after resale, and difference to understand what sits behind the main result.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the main result first. The supporting figures for lease cost, buy cost after resale, and difference explain how the estimate is built.
- The method is Lease payments + due-at-signing versus depreciation + finance interest. Keep the units consistent and use values from the same time period.
Edge cases worth checking
When lease monthly payment is unusual
Operating costs are equal and excluded. Double-check this input before relying on the result.
When comparison period is uncertain
Lease mileage and condition fees are excluded. Run a lower and higher value to see a useful range.
What changes the result most
Lease monthly payment
Use a current amount for lease monthly payment. Include fees or recurring costs that belong in the same figure.
Lease due at signing
Use a current amount for lease due at signing. Include fees or recurring costs that belong in the same figure.
Purchase price
Use a current amount for purchase price. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Lease monthly payment: 10% lower
468Buyinghas the lower estimated cost
Lease monthly payment: 10% higher
572Buyinghas the lower estimated cost
Lease due at signing: 10% higher
3,850Buyinghas the lower estimated cost
Common mistakes
Check lease monthly payment
Operating costs are equal and excluded. Make sure this matches the number you enter.
Keep comparison period consistent
Lease mileage and condition fees are excluded. Use the same units and time period throughout the calculation.
Do not rely on one lease vs buy scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
Which is cheaper for your term and mileage?
A vehicle quote, finance agreement, route, and driving conditions can change the real cost.