Lease vs Buy Calculator

Compare the total cost of leasing and buying a car and find the month the two plans break even.

Lease vs buy calculator

Lease payment

Purchase price

Loan rate (%)

Resale value

Total lease cost: —

Total buy cost: —

Break-even month: —

—

Buy cost counts the down payment, the payments made, the remaining loan balance and the resale value.

Enter the lease payment, the amount due at signing and the lease term.
Enter the purchase price, down payment, loan rate, term and expected resale value.
Read the total cost of each plan and the break-even month.

Common questions about the free online lease vs buy calculator.

Lease cost equals the amount due at signing plus the monthly lease payment multiplied by the number of months you keep the car.

Buy cost equals the down payment plus the loan payments made, plus the remaining balance, minus the resale value when you sell.

The tool compares the running cost of each plan month by month and reports the first month where leasing costs more than buying does.

The buy plan uses the amortisation formula, A = P x i / (1 - (1 + i) ^ -n), with the price minus the down payment as P.

A car keeps some value. Once the loan is paid off, that resale value is money back in your pocket, which a lease never returns.

Leasing suits low mileage drivers who want a new car every few years and would rather keep the monthly payment small.

No. Add expected servicing, tyres and repairs yourself, remembering that a leased car is usually covered by a warranty.

The car is assumed to lose value evenly across the holding period, from the purchase price down to the resale value you enter.

Excess mileage charges can add a lot. Compare your annual mileage with the lease allowance before trusting the lease figure.

Last updated: October 10, 2026