Car Lease vs Buy Calculator
Over the lease term, is leasing or buying with a loan cheaper — and how sensitive is that to resale value?
Spec sheet
lease_vs_buy_net_cost · v1.0.0Net cost over the lease term, with a resale-value scenario sweep
- 01
lease cost = due at signing + monthly × months + disposition fee - 02
buy cost = down + loan payments over the term + remaining loan balance − resale value - 03
remaining balance = −fv(r, months, −payment, loan) (npf) - 04
scenario: repeat with resale ±10 percentage points
- Ignores mileage overage charges, maintenance differences, insurance and the opportunity cost of the down payment.
- Resale value is an estimate — that is why the scenario table is shown.
Worked example
computed by the same formula$40k car, 55 % resale, $450/mo lease
- Car price (incl. tax & fees)
- 40000
- Down payment (buying)
- 5000
- Loan rate
- 7 %
- Loan term
- 5 years
- Resale value at lease end (% of price)
- 55 %
- Lease monthly payment
- 450
- Lease term
- 36 months
- Lease due at signing
- 3000
- Lease disposition fee
- 395
- Cheaper over the lease term
- Leasing
- Difference
- $3,833.67
- Lease net cost
- $19,595.00
- Buy net cost
- $23,428.67
- Resale % where they are equal
- 64.6 %
- 1. Loan payment (npf.pmt) = 693.04
- 2. Loan balance after 36 months (npf.fv) = 15,479.16
Questions
How is the car lease vs buy calculated?
›
Net cost over the lease term, with a resale-value scenario sweep. lease cost = due at signing + monthly × months + disposition fee · buy cost = down + loan payments over the term + remaining loan balance − resale value · remaining balance = −fv(r, months, −payment, loan) (npf) · scenario: repeat with resale ±10 percentage points
Example: $40k car, 55 % resale, $450/mo lease?
›
Cheaper over the lease term: Leasing; difference: $3,833.67.
What does this calculator not cover?
›
Ignores mileage overage charges, maintenance differences, insurance and the opportunity cost of the down payment. Resale value is an estimate — that is why the scenario table is shown.
Where do the numbers come from?
›
Sources: numpy-financial (BSD-3) — ported to TypeScript. The formula is versioned (lease_vs_buy_net_cost v1.0.0) and covered by automated tests.
Is my data stored?
›
No. The calculation runs in your browser and nothing is sent unless you choose to save a shareable link.
Also searched aslease vs buy car · should i lease or buy · car lease calculator · leasing vs financing · lease or finance a car
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