How this lease vs buy car calculator works
The calculator estimates lease cost from the lease payment, amount due at signing, lease term, mileage allowance, overage fee and lease-end costs. It estimates the buy scenario from the vehicle price, down payment, loan terms, taxes or fees, remaining loan balance and expected resale value.
Mileage and end-of-term assumptions
Mileage overage is only estimated if expected driving is above the lease allowance and an overage fee is entered. Lease-end fees, wear charges and purchase-option terms can vary by contract, so the result should be read as a scenario rather than a quote.
Resale value and equity
The buy scenario uses expected resale value as an assumption-sensitive offset. Estimated equity is the expected resale value minus any remaining loan balance at the comparison date.
What this calculator does not include
This calculator does not recommend leasing or buying. It does not model local tax law, approval, exact lease terms, exact resale value, wear charges, insurance quotes, maintenance schedules or dealer-specific fees.
Key terms and assumptionsFormula notes, key terms, source assumptions and limits used in this calculator.
- Lease cost
- Lease cost includes the amount due at signing, lease payments, estimated mileage overage and lease-end fees entered.
- Buy cost
- Buy cost includes upfront cash, loan payments during the comparison period and the estimated equity or remaining balance at the end.
- Mileage allowance
- Mileage overage is estimated from expected distance above the lease allowance and the overage fee entered.
- Resale value
- Expected resale value is a user-entered assumption, not a live vehicle valuation.
- Equity
- Estimated equity is resale value minus the remaining loan balance at the comparison date.
- Region settings
- Region settings change defaults, labels, distance units and currency formatting only. They do not convert exchange rates.
- General estimate
- The result excludes lender approval, exact lease contract terms, local tax rules, wear charges, exact resale value and dealer-specific fees.
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FAQs
Does this calculator tell me whether to lease or buy?
No. It compares the scenarios entered and avoids recommending either option.
Why does mileage matter for a lease?
Many leases include a distance allowance and may charge for excess miles or kilometres.
Why does resale value matter when buying?
Resale value can offset part of the buy scenario cost, but it is only an estimate.
Does this include tax and dealer fees?
Only if you enter them. It does not model local tax rules or dealer-specific fees.
What if the lease term and comparison period differ?
The calculator shows a warning so the comparison is not misread.
Does this include insurance or maintenance?
Only if you enter expected monthly cost differences in More costs.
Can I include a lease purchase option?
This version focuses on comparing lease turn-in cost with the buy scenario. Treat purchase-option amounts as contract details to review separately.
Are the results guaranteed?
No. Payments, fees, mileage, resale value and contract terms can vary.