How this calculation works
This calculator compares the true financial cost of leasing a vehicle versus purchasing it across an identical time horizon (typically 36 months).
Key formulas
- Total purchase outlays: Purchase down payment plus all monthly auto loan payments made during the comparison horizon.
- Buyer ending equity: The projected fair market resale value of the car minus the remaining loan principal balance at the end of the horizon.
- Net cost to buy: Total purchase outlays minus buyer ending equity. Over an identical horizon, this equals the vehicle depreciation plus financing interest and sales tax paid.
- Total net cost to lease: Lease down payment (capitalized cost reduction) plus acquisition fee, total monthly lease payments, disposition turn-in fee, and excess mileage penalties. Ending lease equity is zero.
- Break-even resale value: The exact market resale price at which the net cost of purchasing matches the total outlays of leasing. If the car retains more than this amount, buying wins; if it depreciates below this amount, leasing wins.
Sources and benchmark dates
Vehicle transaction prices and residual depreciation estimates reflect Kelley Blue Book and Edmunds automotive studies. Auto financing interest rates reflect the Federal Reserve G.19 Consumer Credit release. Lease disclosures, acquisition fees, and disposition fees adhere to Consumer Financial Protection Bureau Consumer Leasing Act (Regulation M) guidelines. Checked on 2026-10-12.
A planning estimate based on your inputs and the assumptions shown. Actual depreciation, dealer fees, and lease money factors vary by brand and market conditions.