{
  "slug": "car-lease-vs-buy-cost",
  "title": "Lease vs Buy a Car Cost Calculator",
  "heading": "Lease vs Buy a Car Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/car-lease-vs-buy-cost",
  "summary": "Compare total lease payments against buying with a loan and keeping the car past payoff.",
  "description": "Leasing offers lower monthly payments and a new car every few years but you never build equity, while buying costs more monthly (or requires more cash) but leaves you with an asset once the loan is paid off. This calculator compares total cash outlay over a common time horizon — lease payments plus fees versus loan payments minus the resale value you'd keep after buying.",
  "formula": "Lease Total = (Monthly Lease Payment × Months) + Fees. Buy Total = Loan Payments + Down Payment − Resale Value at end of horizon.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=car-lease-vs-buy-cost",
  "inputs": [
    {
      "id": "leaseMonthly",
      "label": "Lease monthly payment",
      "kind": "number",
      "hint": null,
      "default": 400,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "leaseFees",
      "label": "Lease fees (acquisition, disposition)",
      "kind": "number",
      "hint": null,
      "default": 1200,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "buyPrice",
      "label": "Purchase price",
      "kind": "number",
      "hint": null,
      "default": 34000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "downPayment",
      "label": "Down payment",
      "kind": "number",
      "hint": null,
      "default": 3000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "loanRate",
      "label": "Loan APR",
      "kind": "number",
      "hint": null,
      "default": 6.5,
      "unit": "%",
      "min": 0,
      "max": 25
    },
    {
      "id": "loanTermYears",
      "label": "Loan term",
      "kind": "number",
      "hint": null,
      "default": 5,
      "unit": null,
      "min": 1,
      "max": 8
    },
    {
      "id": "horizonYears",
      "label": "Years to compare",
      "kind": "number",
      "hint": null,
      "default": 5,
      "unit": null,
      "min": 1,
      "max": 10
    },
    {
      "id": "resaleValuePct",
      "label": "Resale value at horizon end (% of price)",
      "kind": "number",
      "hint": null,
      "default": 45,
      "unit": "%",
      "min": 0,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower total cost option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "buyTotal",
      "label": "Buy net cost over horizon",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "leaseTotal",
      "label": "Lease total cost over horizon",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Total cost difference",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Lease monthly payment: 400 $",
      "Lease fees (acquisition, disposition): 1200 $",
      "Purchase price: 34000 $",
      "Down payment: 3000 $",
      "Loan APR: 6.5 %",
      "Loan term: 5",
      "Years to compare: 5",
      "Resale value at horizon end (% of price): 45 %"
    ],
    "outputs": [
      "Lower total cost option: Buy",
      "Buy net cost over horizon: $24,093",
      "Lease total cost over horizon: $25,200",
      "Total cost difference: $1,107"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter lease monthly payment ($).",
      "Enter lease fees (acquisition, disposition) ($).",
      "Enter purchase price ($).",
      "Enter down payment ($).",
      "Enter loan apr (%).",
      "Enter loan term.",
      "Enter years to compare.",
      "Enter resale value at horizon end (% of price) (%).",
      "Read your lower total cost option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "leaseMonthly": 240,
        "leaseFees": 700,
        "buyPrice": 20500,
        "downPayment": 2000,
        "loanRate": 3.9,
        "loanTermYears": 3,
        "horizonYears": 3,
        "resaleValuePct": 25
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "leaseMonthly": 400,
        "leaseFees": 1200,
        "buyPrice": 34000,
        "downPayment": 3000,
        "loanRate": 6.5,
        "loanTermYears": 5,
        "horizonYears": 5,
        "resaleValuePct": 45
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "leaseMonthly": 640,
        "leaseFees": 1900,
        "buyPrice": 54500,
        "downPayment": 5000,
        "loanRate": 10.4,
        "loanTermYears": 8,
        "horizonYears": 8,
        "resaleValuePct": 70
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why does buying usually win over a long horizon?",
      "a": "Once you own the car outright and keep driving it, you stop making payments while a lease requires either a new lease or a purchase at term's end, so buying's advantage grows the longer you keep the car."
    },
    {
      "q": "Does this include mileage overage fees?",
      "a": "No — leases typically cap mileage at 10,000-15,000/year with penalties beyond that, so add expected overage fees to the lease side if you drive more than average."
    },
    {
      "q": "What if I always want a new car every 3 years?",
      "a": "In that case leasing can be cost-competitive or even cheaper since you avoid depreciation risk and repair costs on an aging vehicle, even though this model generally favors buying and keeping."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/new-vs-used-car-cost",
    "https://www.revenuelab.fyi/toolbox/ev-vs-gas-ownership-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Lease vs Buy a Car Cost Calculator (https://www.revenuelab.fyi/toolbox/car-lease-vs-buy-cost)"
}