Lease vs Buy Calculator
Compare the monthly cost of leasing a vehicle versus buying it with a loan.
Calculate
Enter your values below.
Result
Lease monthly payment
0
Loan monthly payment
0
Formula used
Lease payment splits the depreciation (price minus residual) evenly over the term, plus a finance charge based on the money factor. Loan payment uses the standard amortization formula.
Example: $30,000 vehicle — leasing vs. a $27,000 loan at 6% over 60 months compares monthly cash outflow directly.
How to use this calculator
- Enter Vehicle price, Down payment (for loan), Loan interest rate (%), Loan term (months), Lease residual value, Lease term (months), Lease money factor.
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What is a lease 'money factor'?
A small decimal (e.g. 0.002) that represents the lease's finance charge — multiply by 2400 to get an approximate equivalent APR.
What is 'residual value'?
The vehicle's estimated worth at the end of the lease term, set by the leasing company.
Which option is 'better'?
Leasing often has a lower monthly payment but no ownership at the end; buying builds equity but usually costs more per month.
Does this include mileage limits or lease-end fees?
No — those vary by lease contract and should be factored in separately.