Lease vs Own Calculator | Car Ownership Costs

Calculator Inputs

Comparison & Driving

Set the time window and miles you expect to drive.

Comparison period (months)

Common choices: 24, 36, 48, 60.

Annual miles

Used for fuel and lease mileage checks.

Fuel economy (MPG)

Higher MPG lowers fuel cost.

Fuel price (per gallon)

Enter your local average price.

Owning Inputs

Loan, taxes, resale, and selling costs.

Purchase price

Down payment

Trade-in value

Counted as value you give up.

Upfront fees (doc/title/etc.)

Sales tax rate (%)

Reduce taxable amount by trade-in

Common rule in many regions.

Loan APR (%)

Loan term (months)

Resale value (% of purchase)

Used if resale override is empty.

Resale value override (optional)

If provided, this replaces the percent.

Selling cost (fixed)

Example: listing, detailing, transfer fees.

Selling cost (% of resale)

Leasing Inputs

Payment uses money factor, residual, and term.

Lease cap cost (negotiated)

Cap reduction (down payment)

Lower payment, higher upfront.

Trade-in credit (optional)

Also counted as value you give up.

Lease term (months)

Money factor

Approx APR ≈ money factor × 2400.

Residual (%)

Tax rate on payment (%)

Mileage allowance (per year)

Overage charge ($/mile)

Acquisition fee

Disposition fee

Other lease fees (doc/etc.)

Security deposit

Often refundable; choose whether to count it.

Count security deposit as a cost

Repeat identical leases if period exceeds term

Annual Running Costs

Enter different values for lease vs own if needed.

Insurance (own, yearly)

Maintenance (own, yearly)

Registration (own, yearly)

Insurance (lease, yearly)

Maintenance (lease, yearly)

Registration (lease, yearly)

Results appear above this form after submission.

Example Data Table

Example numbers to show how the comparison looks. Replace them with your actual offer details.

Scenario	Period	Purchase / Cap Cost	Loan APR / Money Factor	Resale / Residual	Own Total	Lease Total
Compact SUV	36 months	$32,000 / $31,000	6.5% / 0.00125	55% / 58%	$19,980	$18,740
Sedan	48 months	$28,500 / $27,600	5.9% / 0.00110	50% / 54%	$22,410	$23,090
Truck	60 months	$45,000 / $44,000	7.2% / 0.00145	48% / 52%	$33,860	$35,120

Totals above are illustrative and not financial advice.

Formula Used

1) Loan payment (owning)

Monthly Payment = r × PV ÷ (1 − (1 + r)⁻ⁿ)

PV: loan amount (price + fees + tax − down − trade-in)
r: monthly rate (APR ÷ 12 ÷ 100)
n: loan term in months

2) Lease payment

Depreciation Fee = (Adjusted Cap Cost − Residual Value) ÷ Term
Finance Fee = (Adjusted Cap Cost + Residual Value) × Money Factor
Base Payment = Depreciation Fee + Finance Fee
Monthly Payment = Base Payment + (Base Payment × Tax Rate)

Approx APR ≈ Money Factor × 2400. This is a rule of thumb.

How to Use This Calculator

Set the comparison period you care about, such as 36 months.
Enter your expected annual miles and fuel assumptions.
Fill in buying details: price, fees, tax, loan rate, and term.
Estimate resale value using percent or the override field.
Fill in leasing details: cap cost, residual, money factor, and fees.
Adjust yearly insurance, maintenance, and registration values.
Press Calculate to see totals and breakdowns.
Use CSV or PDF downloads to save your comparison.

For best accuracy, use an offer sheet and realistic resale estimates.

FAQs

1) Why does trade-in show up as a cost?

A trade-in reduces what you finance or lease, but you still give up that value. Counting it keeps comparisons consistent across cash and financed deals.

2) What if my comparison period is longer than the lease term?

Enable the “repeat identical leases” option to estimate multiple lease cycles. It keeps payments constant and repeats major fees, which is a useful approximation for planning.

3) Should I enter MSRP or negotiated price?

Use the negotiated purchase price for owning and the negotiated cap cost for leasing. Discounts and incentives can change the outcome more than small rate differences.

4) How do I estimate resale value?

Use a conservative resale percent for the period you chose, or enter a specific resale number as an override. Higher resale makes owning look better because you recover more value.

5) Does this include repairs and tires?

Yes, if you add them to annual maintenance. Leasing often has lower repair risk inside warranty, so you can set a smaller lease maintenance value if that matches your plan.

6) Why is fuel cost applied to both options?

Fuel depends on miles, MPG, and fuel price, not financing. If your lease and buy choices are different vehicles, adjust MPG to reflect each option separately.

7) What does money factor mean?

Money factor is the lease finance rate used to compute the finance fee. A quick conversion is APR ≈ money factor × 2400, but the payment also depends on residual and cap cost.

8) Is the cheapest option always the best choice?

Not always. Leasing can reduce resale risk and provide newer vehicles, while owning can build equity and reduce long-term costs. Use totals, per-mile cost, and your preferences together.