Lease vs Buy Car Calculator

Compare lease cash paid over a term with a purchase loan and an estimated resale-value path. Money factor is converted to a rough APR equivalent for transparency.

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Vehicle assumptions

Vehicle price ($) i Use your best current estimate; lender and account terms control.
Down payment / due at signing ($) i Use your best current estimate; lender and account terms control.
Lease term (months) i Use your best current estimate; lender and account terms control.
Money factor i Use your best current estimate; lender and account terms control.
Residual value (%) i Use your best current estimate; lender and account terms control.
Buy loan APR (%) i Use your best current estimate; lender and account terms control.
Buy loan term (months) i Use your best current estimate; lender and account terms control.
Annual miles i Use your best current estimate; lender and account terms control.

How to use this calculator

Enter the negotiated vehicle price and cash due at signing.
Set lease term, money factor, and residual percentage.
Enter the purchase-loan rate and term, then compare cash outlay and estimated equity at the lease-term checkpoint.

Results explained

The headline is modeled lease cash paid over the lease term. The purchase side reports loan payments made and estimated equity using the residual value as a conservative end-of-lease value proxy—not a resale guarantee.

Quick reference: lease versus buy assumptions

Lease payment combines depreciation and a finance charge; purchase equity depends on actual market value.

Item	Detail
Lease depreciation	(Price − residual value) ÷ lease months
Lease finance charge	(Adjusted cap cost + residual) × money factor
Money factor APR equiv.	Money factor × 2,400
Buy equity	Estimated value − loan balance after lease term

Taxes, registration, disposition fees, maintenance, incentives, mileage penalties, and insurance are excluded.

How it’s built

Lease payment is depreciation plus a money-factor finance charge. Buy payment uses fixed-loan amortization; the remaining balance is compared with the residual-value proxy after the lease term.

Example

A $38,000 vehicle with a 58% residual over 36 months has a $22,040 residual proxy. A purchase loan may create equity at month 36, while a lease returns the vehicle.

FAQ

What is a money factor?

It is a lease finance-charge multiplier. Multiply it by 2,400 for a rough APR equivalent.

Does mileage change the math?

The field is shown for planning; excess-mile fees are not calculated because contracts vary.

Is residual the resale value?

Residual is a contract estimate, not a promise of market value.