Lease vs buy calculator
Same vehicle, two paths—lease total cash out vs finance payments minus expected resale. Simplified model for decision framing.
Educational estimate only. Real quotes depend on taxes, fees, acquisition/disposition charges, rebates, and how your state treats leases. Use your contract and broker numbers as the source of truth. Reading lease payments and the lease glossary explain the fields behind these calculators.
Lease net cost
Drive-off + all payments
$19,200.00
Buy net cost
Paid in − expected resale
$23,958.76
$782.65/mo loan · $51,958.76 total paid
Lease costs about $4,758.76 less over this period (no equity built).
Worked example
2026 Toyota RAV4, 5-year hold, 12,000 miles/year
- Lease 36mo total
- $15,000($329 × 36) + $3,156 DAS
- Replace with new 24mo lease
- $8,400$350 × 24
- 5-year lease total
- $23,400
- Finance 60mo: payments
- $28,800$480 × 60
- Finance: residual at year 5
- +$12,000 vehicle equity
- Net finance cost
- $16,800
Buying typically wins at 5+ year holds, especially on high-residual vehicles. Lease wins for shorter holds.
Lease vs buy FAQ
Common questions about this calculator. For broader leasing topics, see the full FAQ.
Short hold periods (≤4 years), high-depreciation vehicles, low miles, and tax-advantaged scenarios (business use in some states). Leasing also caps your downside if you don't know how long you'll want the car.
Long hold periods (6+ years), high-mileage drivers (>15k/yr), and vehicles with strong residuals that retain value past the loan term. Buying always wins on lifetime cost if you keep the car well past payoff.
Highly vehicle-dependent. For most mainstream cars, owning starts to win between year 5 and year 7. Luxury vehicles can shift that line in either direction based on residual strength.