Scenario calculator
Car lease vs buying outright
Compare leasing a car to buying it outright based on how long you plan to keep the vehicle.
Scenario introduction
Leasing spreads car costs into monthly payments, while buying requires a big upfront payment. The best choice depends on how long you keep the car and how you value ownership.
Use this calculator to compare total costs over your planned timeline and see when buying becomes cheaper.
Use the calculator below to test your own pricing and timeline for car lease vs buying outright. The recommendation will shift as the time horizon changes, which is why this page emphasizes break-even logic over simple price tags.
Calculator
These defaults reflect a typical car lease vs buying outrightdecision, but you should replace them with your actual numbers. The totals update instantly as you adjust the inputs.
Scenario-specific explanation
Leases can make sense if you replace cars frequently and value predictable monthly costs.
Buying becomes cheaper once the cumulative lease payments exceed the purchase price, which the break-even month reveals.
If you keep a car beyond the average lease term, the monthly lease payments continue while ownership costs flatten after the purchase.
For drivers who upgrade every few years, leasing aligns costs with that shorter horizon and avoids the resale process.
Break-even is the month when total lease payments you would have made match the upfront purchase price.
Decision guidance
Leasing can be cheaper for short ownership cycles, while buying typically wins over longer time horizons.
- Short replacement cycles often favor leasing.
- Keeping a car for many years typically favors buying outright.
- Include maintenance or warranty costs with the option that applies to your plan.
Signals that usually tip the decision
- You drive enough that mileage limits would create penalties on a lease.
- You plan to keep the car well beyond a typical lease period.
- You value predictable monthly payments over long-term ownership savings.
Scenario FAQ
Should I include resale value when buying?
Yes. Subtract your expected resale value from the one-time price to reflect net ownership cost.
Do lease fees change the calculation?
Add any recurring fees to the monthly price so the lease cost is complete.
What about mileage penalties?
If you expect to exceed mileage limits, add the estimated penalty cost to the monthly price.
Does financing a car change the model?
Financed purchases are closer to a monthly payment model. If financing, compare the monthly payment to lease cost.
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Keep exploring or return to the main calculator for a neutral comparison.