Lease vs. Buy Car Calculator

Deciding whether to lease or buy a car involves comparing various short-term and long-term costs. This calculator helps you analyze the financial implications of both options over their respective terms.

Buying a Car

Total Car Price ($):

Down Payment ($):

Loan Term (years):

Loan Interest Rate (%):

Sales Tax Rate (%):

Annual Registration & Fees ($):

Estimated Resale Value after Loan Term ($):

Leasing a Car

Lease Term (years):

Monthly Lease Payment ($):

Down Payment / Capitalized Cost Reduction ($):

Acquisition Fee ($):

Disposition Fee (at lease end) ($):

Annual Mileage Allowance (miles):

Cost Per Extra Mile ($):

Total Expected Miles Driven Over Lease Term:

Shared Costs & Factors

Average Annual Insurance Cost ($):

Average Annual Maintenance Cost ($):

Opportunity Cost of Capital (% per year):

About the Lease vs. Buy Car Calculator

How to Use:

Fill in the details for both the buying and leasing scenarios. For buying, include the car price, down payment, loan details, sales tax, and estimated resale value. For leasing, provide the lease term, monthly payment, down payment, fees, and mileage details. Also, input shared costs like insurance, maintenance, and the opportunity cost of your capital.

Key Calculations:

Total Buying Cost: Includes down payment, total loan payments (principal and interest), sales tax, registration fees, insurance, and maintenance, minus the car's estimated resale value at the end of the loan term. Opportunity cost on the down payment is also considered.
Total Leasing Cost: Includes the lease down payment, total monthly lease payments, acquisition and disposition fees, any costs for exceeding mileage allowance, insurance, and maintenance. Opportunity cost on the down payment is also considered.
The calculator compares these total costs and provides an average monthly cost for each option.

Important Notes:

Maintenance costs can vary; leases often cover some maintenance for the initial term.
Resale value is an estimate and can fluctuate.
Opportunity cost represents potential earnings if your down payment and other upfront costs were invested elsewhere.
This calculator focuses on financial aspects. Consider personal preferences like ownership desire, driving habits, and flexibility.

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