The Full Cost

The Full Cost of Leasing vs Buying a Car

What each path actually costs over the years you'd keep the car — every payment, fee, and the resale value at the end. Enter your numbers; see the full cost of each, the year the answer flips, and what's driving it.

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How long, and the savings

These two move the result more than anything else.

How long you'll realistically keep the car. This drives the result more than any other input.
1 yr15 yrs
Used only for the scenario where you invest the monthly savings instead of spending them.
0%12%
If you buy
The purchase

Negotiated price, the loan, and what the car is worth at the end.

The price you'd negotiate, not MSRP.
$5k$150k
Cash at signing. This money has an opportunity cost — it could be invested instead.
$0$30k
Your actual APR, not an advertised teaser rate.
0%12%
Length of the loan. Most are 5–6 years.
What the car sells for at the end of your holding period. Auto-filled from a typical depreciation curve; adjust if your model holds value unusually well or poorly.
$0$150k
Full-coverage annual premium.
$500$3,000
If you lease
The lease

The offer in front of you, and how much you actually drive.

The negotiated price on the lease. Often a pricier car than you'd buy — enter both honestly.
$5k$150k
Cash at signing: first month, fees, any cap-cost reduction.
$0$10k
The monthly payment on the lease offer.
$200$1,500
Length of each lease before you start a new one.
The lease's mileage cap. Standard is 12,000–15,000.
7,50020,000
Be honest — overage runs about $0.20/mile and adds up fast.
5,00025,000
Leases require higher coverage plus gap insurance.
$500$3,500
Full cost to buy $0
Full cost to lease $0

The 15-year picture

Net cost on each path at the end of every year — what you've paid in, minus what the car is worth (buy) or your invested savings (lease). The lower number is cheaper; the highlighted row is where the cheaper path flips.

YearCost to buyCost to lease + investDifferenceCheaper

What's driving the cost

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    How this is calculated: each figure is net cost over your holding period — everything you pay (payments, down payment or drive-off, insurance, maintenance, fees, mileage overage) minus what the car is worth at the end. The buy path models maintenance from year 4 (~$1,200, rising $200/year), lease mileage overage at $0.20/mile, and a $400 disposition fee per lease return. The "savings invested" scenario compounds the monthly payment difference at the rate you set. These are transparent assumptions, not forecasts — adjust them to your situation. Not financial advice.

    Going deeper