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MyAutoCost results are planning estimates. Actual rates, taxes, fees and vehicle costs vary.

Lease vs Buy

Lease vs buy calculator

Compare what leasing and financing the same car really cost over the same period — with every assumption visible.

Vehicle & period
$
%
Comparison period (months)
Lease
$

Cap cost reduction

%

≈ 6% APR

$
$
$/mi
Buy (finance)
$
%
Loan term (months)
$
%

MyAutoCost

Lease vs buy calculator

Results and assumptions summary

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Over 36 months

Leasing costs $499 less

The lease estimate is lower mainly because buying leaves equity of $6,843 after 36 months. This is a same-horizon planning estimate, not a recommendation.

Lease

Lower cost

$23,377

estimated net cost · $555/mo

Due at signing
$3,000
Payments × 36
$19,982
Acquisition fee (in cap cost)
$695
Disposition fee
$395
Mileage overage
$0

Buy

$23,876

estimated net cost · $714/mo

Down payment
$5,000
Payments × 36
$25,719
Resale value
−$22,800
Loan payoff at end
$15,957

Terms compared

Comparison horizon
36 months
Sales tax assumption
6% on payments / purchase
Lease residual
58% · $22,040
Money factor
0.0025 · ≈ 6% APR
Annual mileage
12,000 allowed · 12,000 expected
Overage rate
$0/mile
Finance APR / term
7% · 60 months
Estimated resale
60% · $22,800
Loan balance at end
$15,957
Estimated equity
$6,843
Assumptions used
  • Lease payment = (depreciation fee + rent charge) × (1 + tax). Depreciation fee = (cap cost − residual) ÷ months; rent charge = (cap cost + residual) × money factor.
  • Cap cost = price + acquisition fee − due at signing.
  • Buy net cost = down + payments in period − (resale value − remaining loan balance). Sales tax and fees are financed.
  • Lease tax treatment varies by jurisdiction. This estimate taxes the monthly lease payment; upfront taxes may apply elsewhere.
  • Disposition, excess wear, early termination and other lease charges can differ from the amounts entered here.
  • Insurance, fuel and maintenance are assumed similar either way and excluded. Opportunity cost of cash is ignored.

Assumptions used

  • Lease payment = (depreciation fee + rent charge) × (1 + tax). Depreciation fee = (cap cost − residual) ÷ months; rent charge = (cap cost + residual) × money factor.
  • Cap cost = price + acquisition fee − due at signing.
  • Buy net cost = down + payments in period − (resale value − remaining loan balance). Sales tax and fees are financed.
  • Lease tax treatment varies by jurisdiction. This estimate taxes the monthly lease payment; upfront taxes may apply elsewhere.
  • Disposition, excess wear, early termination and other lease charges can differ from the amounts entered here.
  • Insurance, fuel and maintenance are assumed similar either way and excluded. Opportunity cost of cash is ignored.

Educational estimates only — not financial, tax or legal advice. Actual rates, taxes, fees and vehicle costs vary.

https://myautocost.com/lease-vs-buy

How the comparison works

To compare fairly, both options are measured over the same period. Leasing costs are what you pay and walk away from. Buying costs are what you pay minus the equity you keep in the car at the end.

If estimated resale is below the remaining loan balance, the result treats the difference as negative equity. If resale is higher, that equity reduces the estimated cost of buying.

Lease payment formula

Payment = [(Cap cost − Residual) ÷ n + (Cap cost + Residual) × MF] × (1 + tax)

When leasing tends to make sense

  • You want a new car every 2–3 years and drive under the mileage allowance.
  • The manufacturer offers subsidized residuals or a low money factor.

When buying tends to make sense

  • You keep cars 5+ years or drive high mileage.
  • You want freedom to modify, sell or pay off early without penalties.

Frequently asked questions

Educational estimates only — not financial, tax or legal advice. Results depend on the inputs you provide and simplified assumptions. Confirm rates, taxes and fees with lenders, dealers and insurers before making decisions.

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