Buy vs. lease a car calculator

How to read your results

This calculator compares the true 5-year cost of each path. For buying: down payment, all loan payments, minus the car's resale value at year 5 (based on your depreciation rate). For leasing: down payment, all lease payments across however many lease cycles fit in 5 years, plus disposition fees — but you own nothing at the end.

The key tradeoff: buying builds equity you keep, while leasing has lower monthly payments but you walk away with nothing (unless you buy out the lease).

What this calculator doesn't include

• Mileage overage fees — leases typically cap mileage at 10,000–12,000/year; going over costs $0.15–$0.30/mile. If you drive a lot, factor this in.
• Maintenance differences — leased cars are usually under warranty the whole term; owned cars may need out-of-warranty repairs after year 3.
• Sales tax structure — varies significantly by state for both buying and leasing; check your state's specific rules.
• Multiple lease cycles — if comparing 5 years of leasing (likely two lease terms), the second lease's payment may differ.

When leasing makes more sense

If you like driving a new car every few years, drive under 12,000 miles annually, and prefer predictable lower monthly payments with built-in warranty coverage, leasing can be the better lifestyle and financial fit — especially for business use where lease payments may be tax-deductible.