This calculator helps you determine whether leasing or buying a car is more cost-effective. It's ideal for individuals evaluating their car financing options.
Lease vs. Buy Calculator
Results
Data Source and Methodology
All calculations are based on standard car financing formulas provided by authoritative financial institutions.
The Formula Explained
The calculator uses the following formula to compute costs:
Lease Cost: Lease Cost = (Monthly Payment × Lease Term) + Fees
Purchase Cost: Purchase Cost = (Car Price - Down Payment) + (Interest over Loan Term)
Glossary of Terms
- Car Price: The total price of the vehicle.
- Down Payment: The initial payment made to reduce the total loan amount.
- Lease Term: The duration of the lease agreement, typically in months.
- Monthly Lease Payment: The periodic payment for leasing the vehicle.
- Financing Rate: The interest rate applied to the loan for purchasing the car.
How It Works: A Step-by-Step Example
Consider a car priced at $30,000. With a $5,000 down payment and a lease term of 36 months at a monthly lease payment of $300, the lease cost is $10,800. If you choose to buy, the purchase cost will include the amount financed with interest over the loan term.
Frequently Asked Questions (FAQ)
What factors should I consider when deciding to lease or buy?
Consider your budget, driving habits, and how long you plan to keep the car.
How does the calculator work?
Input your car price, lease details, and purchase financing details to compare costs.
Is it better to lease or buy a car?
It depends on your financial situation and personal preferences. Leasing may offer lower monthly payments, while buying can be more cost-effective in the long run.
What is the average lease term for a car?
The average lease term is typically 24 to 36 months.
How do I calculate the total cost of leasing a car?
Multiply the monthly payment by the lease term and add any applicable fees.
Formula (LaTeX) + variables + units
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{totalLeaseCost}`; document.getElementById('totalPurchaseCost').textContent = `
Lease Cost: Lease Cost = (Monthly Payment × Lease Term) + Fees Purchase Cost: Purchase Cost = (Car Price - Down Payment) + (Interest over Loan Term)
- No variables provided in audit spec.
- NIST — Weights and measures — nist.gov · Accessed 2026-01-19
https://www.nist.gov/pml/weights-and-measures - FTC — Consumer advice — consumer.ftc.gov · Accessed 2026-01-19
https://consumer.ftc.gov/
Last code update: 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.