Lease vs. Buy Calculator
Put a lease quote beside an out-the-door purchase quote over the same term. Separate cash paid from estimated ending equity, then take a fillable worksheet back to the dealer or lender to confirm the numbers.
From quote to cost
Lease
Cash paid
− refundable deposit
Buy
Cash paid
− estimated resale equity
Net economic subtotal
Over the same comparison term
Lease net economic subtotal
Buy net economic subtotal
Cash paid − estimated ending equity| At the comparison date | Lease, then return | Buy |
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Lease cash paid is shown before the assumed deposit refund. Buy cash paid includes principal and interest; ending equity is the resale estimate minus the remaining loan balance.
Lease payment check
Buy financing check
Take these questions to the provider
Assumptions, exclusions and method
Calculation references: CFPB lease disclosures, loan amortization and FTC car financing guide.
Keep the quote worksheet
Includes editable spaces for actual quotes and sources in the PDF.
This calculator provides estimates only. Actual ownership costs vary by driving habits, vehicle condition, local rates, and market conditions. Figures are general information — not financial, legal, or tax advice. Confirm with your insurer, lender, or a qualified advisor before you buy.
Compare the same period, with every cash flow counted once
A monthly payment does not show the cash due at signing, lease-return charges or the equity left in a purchased vehicle. This worksheet counts a first payment at signing only once, separates a refundable deposit from cost, and subtracts estimated resale equity from purchase cash paid. Both paths use the same term; unknown fees and the excluded running costs remain visible.
See a worked lease-versus-buy example with the payment reconciliation and the quote details to confirm.
How to use this calculator
- 1 Choose the lease term and enter the quoted monthly payment including applicable tax and recurring charges.
- 2 Enter cash due at signing, whether it includes the first payment, the refundable deposit, mileage terms and return fee. Leave an unknown return fee blank.
- 3 Enter the purchase out-the-door price, cash down payment, annual loan interest rate, loan term and your resale estimate at the same comparison date.
- 4 Compare cash paid and net economic subtotals, review exclusions, then copy or save a Letter/A4 worksheet with fields for actual quotes and sources. Add annual detail if needed.
Frequently asked questions
Is it cheaper to lease or buy a car?
It depends on the actual quotes, mileage, loan terms and the car's future resale value. Compare both paths over the same period. This worksheet separates cash paid from net economic cost; it excludes running costs unless already included in the entered quotes and does not guarantee resale value.
Do I need the lease money factor or residual?
This worksheet uses the quoted total monthly payment, so you do not need to reconstruct it from a money factor and residual. Ask for the full lease disclosure to check the payment schedule, signing breakdown, mileage terms and return fee. The buy scenario's resale estimate is your assumption, separate from the lease contract's residual value.
Why are cash paid and net economic cost different?
Lease cash paid includes a refundable deposit, which this model assumes is returned in full. Buy cash paid includes down payment, principal and interest. At the comparison date, resale equity equals estimated resale value minus the remaining loan balance. Buying's net economic subtotal is cash paid minus that equity; negative equity increases the subtotal.
What happens if I do not know the return fee or resale value?
Leave the field blank. A blank return fee remains an unknown addition to the lease subtotal; a blank resale estimate leaves buy equity and net cost unknown. The tool withholds a lower-cost result until both figures are entered. Use 0 only for a confirmed zero, then verify the remaining assumptions before deciding.
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