Understanding the Car Lease vs Buy Calculator
Leasing and buying a car serve different priorities. Leasing offers lower monthly payments and a new vehicle every few years but no ownership at the end; buying costs more per month but builds equity and ends in a paid-off car. This calculator compares the true cost of each over the period you plan to drive the vehicle.
What you are really paying for
A lease payment covers the car’s depreciation during the lease plus interest and fees — you are essentially renting the most expensive years of the vehicle’s life. Buying means paying for the whole car, but once the loan ends you can drive payment-free for years. Over a long horizon, buying and keeping a car is almost always cheaper; over a short one with frequent upgrades, leasing can be competitive.
Mileage and wear matter
Leases cap your annual mileage and charge for excess miles and “abnormal” wear when you return the car. If you drive a lot or are hard on vehicles, those fees can erase the lease’s monthly savings. Buyers face no such limits, which makes ownership a better fit for high-mileage drivers.
Tips & things to know
- •Leasing suits drivers who want a new car every 2–3 years and drive predictable miles.
- •Buying wins for those who keep cars long after the loan is paid off.
- •Always check the mileage cap and per-mile overage fee before signing a lease.