- Enter the vehicle price - the MSRP or negotiated price. In a lease, this is the capitalized cost before the cap reduction.
- Lease details - the money factor (ask the dealer; multiply by 2400 to get the equivalent APR), residual value (%), down payment (cap cost reduction), and annual mileage allowance.
- Buy details - your down payment, loan interest rate and term, and the estimated resale value at the end of the comparison period.
- The calculator compares total out-of-pocket cost over the same number of months.
Car Lease vs. Buy Calculator
Compare the total cost of leasing versus buying a car over the same period.
Vehicle
$
%
36 months
24mo36mo48mo60mo
Lease Details
%
$
$
$
Buy Details
$
%
$
Better over 36 months
Buying
by $2,047
Lease Payment /mo
$543
Buy Payment /mo
$593
| Money Factor APR equiv. | 4.32% |
| Residual Value | $19,250 |
| Total Lease Cost | $22,431 |
| Resale Value at 36mo | $22,000 |
| Buy Net Cost (after resale) | $20,384 |
Lease: you own nothing at the end. Buy net cost subtracts estimated resale value from total cost. If you plan to keep the car long-term, buying wins more strongly.
How to Use the Car Lease vs. Buy Calculator
Frequently Asked Questions
The money factor is the lease equivalent of an interest rate. To convert to an approximate APR, multiply by 2,400. A money factor of 0.00180 equals about 4.32% APR. Dealers sometimes mark up the money factor above the manufacturer's published "buy rate." Always ask for the money factor in writing and verify it against the manufacturer's current published rate (available on brand-specific forums and sites like MoneySuperMarket or Edmunds).