{
  "slug": "lease-vs-buy-car",
  "title": "Lease vs Buy Car Calculator",
  "heading": "Lease vs Buy Car Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/lease-vs-buy-car",
  "summary": "Compare the true cost of leasing against financing.",
  "description": "Leasing looks cheaper monthly but leaves you with nothing at the end. Buying costs more per month but you keep the residual value. This compares total cost of ownership over the same period, net of what the car is worth when you are done.",
  "formula": "Lease cost = payments + drive-off. Buy cost = payments + down − resale value.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=lease-vs-buy-car",
  "inputs": [
    {
      "id": "months",
      "label": "Comparison period",
      "kind": "number",
      "hint": null,
      "default": 36,
      "unit": "months",
      "min": 12,
      "max": null
    },
    {
      "id": "leasePayment",
      "label": "Lease payment",
      "kind": "number",
      "hint": null,
      "default": 420,
      "unit": "$/mo",
      "min": 0,
      "max": null
    },
    {
      "id": "leaseDown",
      "label": "Lease drive-off cost",
      "kind": "number",
      "hint": null,
      "default": 2500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "price",
      "label": "Purchase price",
      "kind": "number",
      "hint": null,
      "default": 38000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "buyDown",
      "label": "Purchase down payment",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "apr",
      "label": "Loan APR",
      "kind": "number",
      "hint": null,
      "default": 7.2,
      "unit": "%",
      "min": 0,
      "max": null
    },
    {
      "id": "loanMonths",
      "label": "Loan term",
      "kind": "number",
      "hint": null,
      "default": 60,
      "unit": "months",
      "min": 12,
      "max": null
    },
    {
      "id": "resalePct",
      "label": "Resale value at end",
      "kind": "number",
      "hint": null,
      "default": 55,
      "unit": "% of price",
      "min": 0,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "verdict",
      "label": "Cheaper option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "difference",
      "label": "Cost gap over the period",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "leaseCost",
      "label": "Total lease cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "buyCost",
      "label": "Net cost to buy",
      "format": "currency",
      "hint": "After resale value",
      "primary": false
    },
    {
      "id": "buyMonthly",
      "label": "Loan payment",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Comparison period: 36 months",
      "Lease payment: 420 $/mo",
      "Lease drive-off cost: 2500 $",
      "Purchase price: 38000 $",
      "Purchase down payment: 5000 $",
      "Loan APR: 7.2 %",
      "Loan term: 60 months",
      "Resale value at end: 55 % of price"
    ],
    "outputs": [
      "Cheaper option: Leasing wins",
      "Cost gap over the period: $4,750.72",
      "Total lease cost: $17,620.00",
      "Net cost to buy: $22,370.72",
      "Loan payment: $656.56"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter comparison period (months).",
      "Enter lease payment ($/mo).",
      "Enter lease drive-off cost ($).",
      "Enter purchase price ($).",
      "Enter purchase down payment ($).",
      "Enter loan apr (%).",
      "Enter loan term (months).",
      "Enter resale value at end (% of price).",
      "Read your cheaper 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": {
        "months": 24,
        "leasePayment": 250,
        "leaseDown": 1500,
        "price": 23000,
        "buyDown": 3000,
        "apr": 7.2,
        "loanMonths": 36,
        "resalePct": 33
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "months": 36,
        "leasePayment": 420,
        "leaseDown": 2500,
        "price": 38000,
        "buyDown": 5000,
        "apr": 7.2,
        "loanMonths": 60,
        "resalePct": 55
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "months": 60,
        "leasePayment": 670,
        "leaseDown": 4000,
        "price": 61000,
        "buyDown": 8000,
        "apr": 7.2,
        "loanMonths": 96,
        "resalePct": 88
      }
    }
  ],
  "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": "How does the lease vs buy car calculator work?",
      "a": "Leasing looks cheaper monthly but leaves you with nothing at the end. Buying costs more per month but you keep the residual value. This compares total cost of ownership over the same period, net of what the car is worth when you are done. The underlying maths is: Lease cost = payments + drive-off. Buy cost = payments + down − resale value."
    },
    {
      "q": "What do I need to enter?",
      "a": "8 values: comparison period, lease payment, lease drive-off cost, purchase price, purchase down payment, loan apr, loan term, and resale value at end. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the cheaper option result mean?",
      "a": "It is returned as a plain value and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/auto-loan",
    "https://www.revenuelab.fyi/toolbox/car-affordability"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Lease vs Buy Car Calculator (https://www.revenuelab.fyi/toolbox/lease-vs-buy-car)"
}