Calculator Inputs
Example Data Table
| Scenario | Vehicle Price | Comparison Months | Lease Payment | Buy APR | Expected Annual Miles | Illustrative Cheaper Option |
|---|---|---|---|---|---|---|
| Compact commuter | $28,000 | 48 | $365 | 5.25% | 10,000 | Lease |
| Family SUV | $42,000 | 60 | $545 | 6.10% | 12,000 | Buy |
| High mileage driver | $36,500 | 60 | $485 | 6.75% | 18,000 | Buy |
Use these sample rows as starting points. Replace them with real quotes from your dealer, lender, insurer, and local tax rules.
Formula Used
Lease monthly payment uses two parts:
- Depreciation charge = (Adjusted cap cost − Residual value) ÷ Lease term
- Finance charge = (Adjusted cap cost + Residual value) × Money factor
Adjusted cap cost = Vehicle price − Lease rebate − Lease down payment
Residual value = Vehicle price × Residual percentage
Lease total cost = Upfront lease cash + Lease payments + Mileage penalty + Maintenance + Registration + Disposition fees
Purchase loan payment uses the standard amortization formula:
Monthly payment = P × r ÷ (1 − (1 + r)−n)
Where:
- P = Loan principal
- r = Monthly interest rate
- n = Number of monthly payments
Gross purchase cost = Vehicle price + Sales tax + Purchase fees − Rebate
Estimated resale value = Vehicle price × (1 − Annual depreciation rate)Years
Estimated equity = Resale value − Remaining loan balance
Buy net cost = Cash applied + Loan payments + Maintenance + Registration − Estimated equity
How to Use This Calculator
- Enter the vehicle price, tax rate, and your comparison period.
- Fill the lease section using the dealer worksheet. Include money factor, residual, fees, and mileage terms.
- Fill the buy section using your loan quote. Add down payment, trade in value, APR, and fees.
- Estimate maintenance, registration, and expected yearly miles realistically.
- Submit the form to view total costs, monthly costs, end equity, and the side by side graph.
- Download the result as CSV or PDF for sharing or later review.
Frequently Asked Questions
1. Why can buying look cheaper even with higher monthly payments?
Buying can build equity. When you sell later, that resale value offsets your spending. Leasing usually ends without ownership value unless the buyout is attractive.
2. What is a money factor?
A money factor is the financing rate used in lease calculations. Multiplying it by 2400 gives an approximate APR equivalent for quick comparison.
3. Should I include maintenance costs?
Yes. Some leases include warranty coverage longer than your comparison period. Buying often creates higher maintenance costs later, especially after the factory warranty ends.
4. Why does mileage matter so much for leasing?
Excess miles can create large end of term penalties. Drivers with long commutes often find buying more cost effective over several years.
5. Does this calculator include insurance?
No. Insurance varies heavily by driver, location, and coverage. Add separate insurance estimates if one option changes your premium meaningfully.
6. What comparison period should I use?
Use the number of months you expect to keep the vehicle. Many shoppers test 36, 48, and 60 months to see how the answer changes.
7. How accurate is the resale estimate?
It is only an estimate. Market demand, condition, accident history, and brand reputation can move resale value far above or below projections.
8. When is leasing usually the better fit?
Leasing often suits drivers wanting lower payments, newer cars frequently, warranty coverage, and predictable short term ownership without resale responsibilities.