Lease vs Buy Payment Calculator

A lease vs buy payment calculator is a financial comparison tool that evaluates the total cost of leasing versus purchasing a vehicle or piece of equipment over a specific term. For leasing, it factors in the selling price (capitalized cost), down payment, money factor (the lease equivalent of an APR), term length, residual value, acquisition and disposition fees, mileage allowance, and excess mileage charges. For buying, it factors in the purchase price, down payment, loan APR, loan term, sales tax, and expected trade-in or resale value at the end of the comparison period. The calculator produces a side-by-side comparison of monthly payments, total costs, and a data-driven recommendation. Our lease vs buy payment calculator runs entirely in your browser with no data uploaded to any server.

1. Enter Lease Terms: Input the selling price (capitalized cost), down payment, lease term in months, money factor (typically 0.0005-0.0030, convertible to APR by multiplying by 2,400), residual value percentage, annual mileage allowance, excess mileage fee per mile, your estimated actual annual miles, acquisition fee, and disposition fee. The calculator uses the standard lease formula: monthly payment = (adjusted cap cost − residual) / term + (adjusted cap cost + residual) × money factor, plus sales tax.
2. Enter Purchase Financing Details: Input the purchase price, down payment, loan APR, loan term in months, estimated trade-in or resale value at the end of the comparison period, and your local sales tax rate. The calculator computes the monthly loan payment using the standard amortization formula and determines total loan cost including interest over the full term, subtracting the end-of-term value to find the net cost of buying.
3. Review the Comparison & Recommendation: The results display a comprehensive side-by-side comparison table showing monthly payment, total payments over term, fees, interest, end-of-term value, and total cost for both options. A recommendation badge indicates which option is more cost-effective, and the break-even analysis shows how long you need to keep the vehicle for buying to become cheaper than leasing.

• Monthly Payment: The amount due each month under each scenario. Lease payments are typically lower than loan payments because you only finance the vehicle's depreciation (plus fees and money factor), not its full purchase price.
• Total Cost Over Term: The complete cost of each option over the comparison period, including all fees, taxes, interest, and end-of-term adjustments. For leasing, this includes down payment, all monthly payments, acquisition fee, disposition fee, and any mileage overage charges. For buying, this includes down payment, all loan payments (principal + interest), and sales tax, minus the estimated resale or trade-in value.
• End-of-Term Equity: When you lease, you return the vehicle and have no equity. When you buy, the vehicle has residual value that you can realize by selling or trading it in. This equity is subtracted from the total cost of buying, often making buying more cost-effective for long-term ownership.
• Break-Even Analysis: The calculator determines how many months of ownership it takes for buying to become cheaper than leasing. If you plan to keep the vehicle beyond this break-even point, buying is typically the better financial decision. If you plan to switch vehicles sooner, leasing may be more cost-effective.

The lease vs buy payment calculator is 100% free with no signup required. All calculations are performed locally in your browser - your vehicle pricing, loan rates, and lease terms never leave your device. There are no usage limits or restrictions. The tool supports vehicle prices from $1,000 to $500,000, lease terms from 12 to 72 months, loan APRs from 0% to 30%, and loan terms from 12 to 96 months. Use it as many times as you need to compare different vehicles, lease offers, and financing options before making your purchase or lease decision.