How this calculator works
Lease-versus-buy results depend on mileage, depreciation, residual value, APR or money factor, fees, taxes, and how long you keep the vehicle. The homepage version models financing and estimated equity explicitly.
Example
Lease
Focus on due-at-signing, total payments, mileage limits, disposition fees, and end-of-term choices.
Buy
Focus on financing cost, depreciation, maintenance, and the equity you expect to retain.
What can change the answer?
Actual financing terms, taxes, fees, incentives, insurance, maintenance, depreciation, driving patterns, and vehicle condition can materially change the result. Use current transaction-specific inputs whenever possible.
Common questions
Is leasing cheaper?
Sometimes over a short period, but retained equity can change the answer.
What is residual value?
It is the contractual expected value of a leased vehicle at the end of the lease.
What about mileage fees?
Include expected excess-mileage charges in your real-world comparison.
Does buying always build equity?
Not immediately; a vehicle can depreciate faster than the loan balance falls.
When does buying usually improve?
Keeping a purchased vehicle longer can spread transaction costs over more years, but maintenance and depreciation still matter.