Lease vs. Buy Calculator
Leasing and buying solve different problems, and comparing only their monthly payments hides the real tradeoff. This calculator compares total cost over your ownership horizon — including what you'd have left over (equity, for buying; nothing, for leasing) at the end.
Leasing
Buying
Lease — effective monthly cost
$0/mo
You own nothing when the lease ends.
Buy — effective monthly cost
$0/mo
After netting out your expected resale value.
Leasing almost always has a lower monthly payment than buying the same car, but it also means you own nothing at the end and are typically restricted by an annual mileage cap with per-mile overage fees — factor in your real annual mileage before assuming the lower payment is the better deal.
Frequently asked questions
Is leasing ever the smarter financial choice?
Leasing can make sense if you want a new vehicle every few years, drive below the typical mileage cap (usually 10,000-15,000 miles/year), and prefer a predictable monthly cost with less maintenance risk since the vehicle stays under warranty. It's generally the less financially efficient choice long-term if you plan to keep a vehicle for many years past a loan payoff, since buying eventually leaves you with an asset and no payment at all.
What happens if I go over the mileage limit on a lease?
You'll typically owe a per-mile overage fee at lease-end, often somewhere in the range of $0.15-$0.30 per mile over your contracted limit — which can add up quickly if you regularly exceed your annual allowance. If your driving habits are unpredictable or mileage-heavy, buying (or negotiating a higher mileage allowance upfront) usually makes more financial sense.
Does buying really cost less than leasing in the long run?
Usually, yes, if you keep the vehicle well past the loan payoff — once the loan is paid off, your only ongoing costs are insurance, fuel, and maintenance, with an asset you can sell or trade. Leasing means an ongoing payment indefinitely, since you never stop leasing (or buying) some vehicle. The comparison gets closer the more frequently you'd trade in a purchased vehicle anyway.
What is a lease-end buyout, and is it a good idea?
A lease-end buyout lets you purchase the leased vehicle at a predetermined residual value set at the start of the lease. It can be a good deal if the car's actual market value at lease-end is higher than that residual price (which has happened more often recently with used-vehicle price increases) — compare the buyout price to current market listings for that specific vehicle before deciding.