About this tool
Car Lease vs Buy Calculator is a free, in-browser tool that settles the classic question: over the same time horizon, is it cheaper to lease a car or to finance and keep it? Enter the lease terms on one side and the purchase and loan terms on the other; every figure is computed locally and nothing is uploaded.
The lease total cost is straightforward: down payment + monthly payment × lease term + acquisition/disposition fees. For buying, the financed amount is price − down payment, and the monthly payment uses the standard amortization formula M = P·r ÷ (1 − (1+r)⁻ⁿ), with r = APR ÷ 1200 and n the loan term in months. Both paths are then measured over the lease horizon: you pay your down payment plus the monthly payments made during that period, and — if the loan runs longer than the lease — you still owe the remaining balance at the end. Subtracting the car's estimated resale value gives the net cost of buying, because that equity is money you keep.
Buying usually wins on longer horizons because you own an asset at the end, while leasing can look cheaper on the monthly line but leaves you with nothing. The tool shows the lease total, the net buy cost, the difference and which option is cheaper, using no live rates so it works anywhere.