Car lease vs buy calculator

Car lease vs buy calculator: what it is for

Compare three ways to have a car over the same period: paying cash, financing (amortized loan) or leasing or subscribing. The tool adds down payment, installments, monthly fees, insurance, taxes and maintenance, subtracts the car's resale value at the end and considers what the money would earn invested, showing the net cost of each option in today's money. The chart shows the cumulative cost month by month.

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How to use

1. Enter price, period and return.
2. Fill in the purchase and loan details.
3. Enter the lease or subscription payment.

When to use it

• Decide between buying and subscribing to a car.
• See what a car loan really costs.
• Compare lease offers for a business.

Frequently asked questions

How is the comparison made?

The tool adds up everything you pay in each option over the chosen period and subtracts what comes back: when buying, the car's resale value at the end; in all of them, what the money would have earned if invested (opportunity cost). The result is the net cost of each path.

What goes into the cost of buying?

Down payment, loan installments (amortized), insurance, registration and taxes and maintenance per year. Resale is calculated from the annual depreciation entered. Paying cash means the whole price is paid upfront.

And leasing or a car subscription?

The monthly payment and, if any, a down payment or deposit. Subscriptions usually include insurance, taxes and maintenance; untick the option if your plan does not, and those costs are added too.

Which is cheaper?

It depends on the numbers: high interest and steep depreciation favor leasing; keeping the same car for many years and paying cash favor buying. Adjust the assumptions and see how the result changes.

Is it really free?

Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.

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