Buy vs. Lease a Car Calculator
Compare the total cost of buying a car (cash or financed) against paying a monthly lease over the same period, factoring in the resale value you keep when you buy — something a lease never gives you back.
How is it calculated?
Total cost buying = down payment + (monthly financing payment × months) + (annual maintenance and insurance × years) − estimated resale value at the end of the period (you get this back when you sell the car, so it's subtracted from the cost). Total cost leasing = monthly payment × months. The difference is what you save by buying versus what you'd pay leasing over the same time — if it's negative, leasing comes out cheaper over that period.
Examples
Buy: 5,000 down, 250/month, 900/year maintenance, resale 8,000 after 4 years. Lease: 350/month
Buying costs 12,600 versus 16,800 leasing — buying is 4,200 cheaper.
Buy: 3,000 down, 180/month, 700/year maintenance, resale 6,000 after 3 years. Lease: 300/month
Buying costs 5,580 versus 10,800 leasing — buying is 5,220 cheaper.
What to look at beyond the monthly payment
A lease doesn't build equity: at the end of the contract you hand the car back with nothing to sell, while buying (even financed) means the car is yours and keeps a resale value. If you're torn between financing a purchase or leasing, also compare against the real annual cost of owning a car, which includes depreciation.