Compare Lease & Buy Options in Under 60 Seconds
Use our Lease vs Buy Car Calculator to instantly compare true costs. Make smarter car decisions and protect your savings plan in seconds.
Frequently Asked Questions
Not sure whether to lease or buy? Our Lease vs Buy Car Calculator gives you a precise cost breakdown in one click — built for FIRE-minded drivers.
A: It compares two scenarios side by side. Enter your purchase price, loan term, interest rate, and estimated residual value for the buy option. Then enter your lease term and monthly lease fee. The calculator computes total net cost for each path — factoring in taxes, down payment, and end-of-term vehicle value — and tells you which option saves you more money.
A: It depends on your numbers, but the gap is often significant. In a typical example — $35,000 vehicle, 5.5% loan rate, $399/month lease — leasing saves over $7,000 across the term. Use the calculator to plug in your actual figures and see your personal savings gap instantly.
A: Yes — and dramatically. A higher down payment reduces your financed amount and monthly buy payment, which narrows the gap between leasing and buying. A lower down payment makes leasing look more attractive short-term. The calculator recalculates your net cost in real time whenever you adjust the down payment field.
A: Most leases run 24 to 36 months. The term matters because a shorter lease means higher monthly payments but lower total commitment. When comparing against a 60-month auto loan, a 36-month lease nets out differently than a 24-month one — especially once you factor in the residual value you retain by owning. Run both scenarios in the calculator to see the real difference.
A: Residual value is the estimated worth of your car at the end of the loan term. It's subtracted from your total buy cost to calculate net cost to own. A higher residual value (car holds its value well) makes buying more competitive. A vehicle that depreciates fast tips the math toward leasing. Input your best estimate — or use current market data for your model — to get an accurate comparison.
A: For FIRE-focused individuals, the answer hinges on opportunity cost and cash flow. Leasing frees up capital monthly — money that can go directly into index funds or tax-advantaged accounts. If your monthly savings differential (lease vs. buy payment) gets invested consistently, the compounding effect can outweigh the lack of vehicle ownership. The calculator shows you the exact monthly delta to make that call.
A: Yes. Simply enter $0 in the down payment field. The calculator adjusts the buy scenario's financed amount and recalculates net costs for both options accordingly. Keep in mind: $0 down on a purchase increases your loan balance and interest paid, which often makes the lease option appear even more cost-effective in the summary.
A: No — and this is a critical mistake most buyers make. Monthly payment is a poor comparison metric on its own. A $399 lease payment looks cheaper than a $573 loan payment, but the loan builds equity. The Total Net Cost figure — which this calculator computes by subtracting residual vehicle value from total buy costs — is the number that actually tells you which option wins financially.