Car / Compare
Lease vs Buy Car Calculator: Same-Horizon Net Cost
Compare a lease with financing the same car and selling it at the end of the lease term. Include depreciation, the loan balance and optional opportunity cost.
Lease vs Buy Car Calculator: Same-Horizon Net Cost: Uses one lease term as the comparison horizon. Buying net cost includes upfront cash and trade-in, payments made, remaining loan debt and optional forgone returns, less the expected sale price. Leasing includes the lease cost and optional forgone returns. Runs 100% locally in your browser with zero server file uploads.
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Changing currency does not convert prices. Unit changes preserve the same physical quantities.
Compare one lease with buying the same car at the negotiated price, then selling it after the lease term.
Buying costs equal cash and trade-in paid upfront, loan payments and the remaining loan balance, less resale value. Buying has full-price sales tax and no rebate or acquisition fee. Lease rebates and fees apply only to leasing. Running costs are assumed equal and omitted.
Opportunity cost compounds each cash outflow to the comparison date at your chosen annual return; lease payments start at signing and loan payments at month-end. Break-even is the resale value at which the two net costs match. A negative threshold means buying is cheaper even with zero resale value. Depreciation is a forecast, not a valuation.
The acquisition fee is financed. Due at signing includes cash reduction, upfront tax and the first payment. Total lease cost includes your trade-in credit but excludes rebates, refundable deposits, registration, disposition, excess mileage and wear fees. The first payment is counted once. Federal Reserve: Keys to Vehicle Leasing
Lease and loan comparison
The Federal Reserve explains the difference between paying for depreciation under a lease and paying principal under financing: https://www.federalreserve.gov/pubs/leasing/resource/different/payments.htm
Resale and timing assumptions
Resale follows a constant annual declining-balance rate, with fractional years compounded proportionally. The purchase price is the lease's negotiated price. There are no renewal leases, early termination, selling fees or vehicle-specific resale forecasts. Fixed monthly loan payments use P × r ÷ [1 − (1 + r)^−n], or P ÷ n at zero interest.
How to use it
- Enter the lease offer and negotiated car price.
- Set buying down payment, loan terms, annual depreciation and optional investment return.
- Compare net costs and the resale value needed to break even at the same date.
Privacy & limitations
All calculations run locally in your browser.
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Frequently asked questions
What does break-even mean?
It is the resale price at the end of the lease term at which buying and leasing have equal net cost. Above that value, buying costs less. A negative threshold means buying already costs less with zero resale value.
What if the loan lasts longer than the lease?
Payments stop at the comparison date and the remaining loan balance is included as a debt to repay when selling. If the loan ends earlier, no additional payments are assumed.
How is opportunity cost calculated?
Each cash outflow is compounded to the comparison date at your chosen annual return. Lease payments begin at signing, loan payments at month-end. Enter zero to omit it. Buying pays full-price sales tax, with no lease rebate or acquisition fee. Equal running costs are omitted.
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