Lease or buy? Compare the estimated cost.
Compare leasing and buying over the same period. Include financing, upfront fees, operating costs, mileage and the value you retain to estimate each option's total and monthly cost.
36-month decision
Net cost after estimated equity and the deposit refund.
Estimated difference: $1,954 · $54/mo
- Effective monthly cost to buy
- $896
- Effective monthly lease cost
- $842
- Monthly loan payment
- $794.19
- Amount financed
- $40,590
- Purchase cash outflow
- $40,431
- Remaining loan balance
- $17,828
- Estimated vehicle equity
- $8,172
- Lease cash outflow before refund
- $30,305
- Assumed deposit refund
- $0
- Charge for 6,000 excess miles
- $1,500
Total economic cost
Resale stress test ±10%
The lower-cost option changes within this range. Resale value is a deciding variable.
Educational estimate. Use figures from actual offers. Incentives, tax deductions, excess wear, selling costs and the opportunity cost of cash are not modeled.
What this actually compares
Buying and leasing are compared over the full lease term. Buying adds the down payment, loan payments and operating costs, then subtracts estimated equity: resale value minus remaining debt. Leasing adds signing cash, remaining payments, fees, operating costs and excess mileage, then subtracts the refundable deposit.
The monthly loan payment is an actual payment. Effective monthly cost spreads the net economic cost over the comparison period; it is not a contract payment.
The model assumes a fixed-rate loan, on-time payments at each month end and a full deposit refund at lease end. Early termination is not modeled. Resale value is a user estimate and should match the selected horizon.
CFPB: interest rate, APR and fees · CFPB: lease payments and deposits
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