Buy vs Lease Car Calculator
Compare buying a car outright against leasing.
Compare the total cost of buying a car outright against leasing across a matched ownership period. Enter buy price to see net cost of each path over the period.
What this tool does
This calculator models the net cost difference between purchasing a car and leasing one over a defined period. It takes your purchase price, expected resale value at the end of that period, monthly lease payments, and the length of time you plan to keep or lease the vehicle, then calculates total cost for each option. The buy path net cost equals purchase price minus resale value. The lease path net cost equals monthly payment multiplied by the number of months. The comparison shows which path results in lower total expenditure under your assumptions. The calculation does not account for financing costs, interest on capital, maintenance, insurance, fuel, or other operating expenses—it focuses solely on the core transaction costs of acquisition versus leasing. Results serve for educational comparison and are based on the figures you provide.
Quick answer: with the default values, the result is $800.00 (Buying Costs Less). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Buy outright, lease for 3 years, then what? Honest comparison needs the same window on both sides. Buy: 25,000 now, keep for 3 years, sell for 15,000 — net cost 10,000 across 36 months = 278/month. Lease: 300/month × 36 = 10,800 with zero at end. In this example lease costs 800 more but saves the upfront capital and the hassle of selling. Neither is always right — depends on cashflow, mileage, and how you feel about always driving something new.
Vehicle-cost comparator.
A worked example
With the defaults: buy price of 25,000, resale value at end of 15,000, lease monthly of 300, period of 36. The tool returns 800.00.
What moves the number most
The result responds to Buy Price, Resale Value at End, Lease Monthly, and Period.
The formula behind this
Buy net = price minus expected resale. Lease total = monthly × months. Ignores cost of capital locked up in the buy path.
Using this to think, not predict
Financial plans are wrong by month six — new information arrives and reshapes the picture. The point of running projections isn't to be right in ten years; it's to be less wrong in the decision you're making this week.
Putting both options on the same window
Comparing a purchase against a lease only works when both cover the same window. The calculator nets the resale value off the purchase price so buying is measured by what the period actually consumed, not by the cash paid on day one. At the defaults, a 25,000 car resold for 15,000 after three years costs 10,000 across 36 months, against 10,800 for a lease at 300 a month.
Costs that sit outside the comparison
The resale figure carries most of the uncertainty. It is an estimate made three years early, and depreciation varies with mileage, condition, and the model's demand at the time. Costs common to both paths, such as insurance and fuel, are left out because they cancel. Costs specific to one path do not: deposits, arrangement fees, excess-mileage charges, and end-of-contract damage assessments sit outside the calculation, as does the capital tied up in an outright purchase.
Leasing at £300 monthly versus buying at £25,000 results in $800.00 over 36 months.
Inputs
| Buy Net Cost | $10,000.00 |
|---|---|
| Lease Total | $10,800.00 |
| Buy Cost per Month | $277.78 |
| Period | 36 months |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Buy net = price minus expected resale. Lease total = monthly × months. Ignores cost of capital locked up in the buy path.
References
Frequently Asked Questions
Does this include maintenance?
What about mileage?
Are there tax differences?
What about holding longer?
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