Vehicle Economics
Vehicle Lease vs Buy Calculator
Compare lease versus buy total cost of ownership with monthly financing, fees, mileage, and fuel assumptions. Results update instantly as any input changes.
Results
Lease total cost
$65,737.34
Buy total cost
$53,320.28
Outcome
Buy is cheaper
Savings at horizon
$12,417.06
Break-even month
60 (Mar 2031)
Buy minus lease (horizon)
-$12,417.06
Lease highlights
Payment: $589.74
Upfront cash: $4,295.00
Recurring non-financing: $337.80
Buy highlights
Loan payment: $804.78
Upfront cash: $5,000.00
Recurring non-financing: $367.22
Cumulative cost comparison
Monthly breakdown
60 rows
| Month | Lease monthly | Lease cumulative | Buy monthly | Buy cumulative | Buy minus lease |
|---|---|---|---|---|---|
| Apr 2026 | $5,222.54 | $5,222.54 | $6,172.00 | $6,172.00 | +$949.47 |
| May 2026 | $927.54 | $6,150.08 | $1,172.00 | $7,344.01 | +$1,193.93 |
| Jun 2026 | $927.54 | $7,077.62 | $1,172.00 | $8,516.01 | +$1,438.40 |
| Jul 2026 | $927.54 | $8,005.16 | $1,172.00 | $9,688.02 | +$1,682.86 |
| Aug 2026 | $927.54 | $8,932.70 | $1,172.00 | $10,860.02 | +$1,927.33 |
| Sep 2026 | $927.54 | $9,860.23 | $1,172.00 | $12,032.03 | +$2,171.79 |
| Oct 2026 | $927.54 | $10,787.77 | $1,172.00 | $13,204.03 | +$2,416.26 |
| Nov 2026 | $927.54 | $11,715.31 | $1,172.00 | $14,376.04 | +$2,660.73 |
| Dec 2026 | $927.54 | $12,642.85 | $1,172.00 | $15,548.04 | +$2,905.19 |
| Jan 2027 | $927.54 | $13,570.39 | $1,172.00 | $16,720.05 | +$3,149.66 |
| Feb 2027 | $927.54 | $14,497.93 | $1,172.00 | $17,892.05 | +$3,394.12 |
| Mar 2027 | $927.54 | $15,425.47 | $1,172.00 | $19,064.06 | +$3,638.59 |
| Apr 2027 | $927.54 | $16,353.01 | $1,172.00 | $20,236.06 | +$3,883.05 |
| May 2027 | $927.54 | $17,280.55 | $1,172.00 | $21,408.07 | +$4,127.52 |
| Jun 2027 | $927.54 | $18,208.09 | $1,172.00 | $22,580.07 | +$4,371.98 |
| Jul 2027 | $927.54 | $19,135.62 | $1,172.00 | $23,752.08 | +$4,616.45 |
| Aug 2027 | $927.54 | $20,063.16 | $1,172.00 | $24,924.08 | +$4,860.92 |
| Sep 2027 | $927.54 | $20,990.70 | $1,172.00 | $26,096.08 | +$5,105.38 |
| Oct 2027 | $927.54 | $21,918.24 | $1,172.00 | $27,268.09 | +$5,349.85 |
| Nov 2027 | $927.54 | $22,845.78 | $1,172.00 | $28,440.09 | +$5,594.31 |
| Dec 2027 | $927.54 | $23,773.32 | $1,172.00 | $29,612.10 | +$5,838.78 |
| Jan 2028 | $927.54 | $24,700.86 | $1,172.00 | $30,784.10 | +$6,083.24 |
| Feb 2028 | $927.54 | $25,628.40 | $1,172.00 | $31,956.11 | +$6,327.71 |
| Mar 2028 | $927.54 | $26,555.94 | $1,172.00 | $33,128.11 | +$6,572.18 |
| Apr 2028 | $927.54 | $27,483.48 | $1,172.00 | $34,300.12 | +$6,816.64 |
| May 2028 | $927.54 | $28,411.02 | $1,172.00 | $35,472.12 | +$7,061.11 |
| Jun 2028 | $927.54 | $29,338.55 | $1,172.00 | $36,644.13 | +$7,305.57 |
| Jul 2028 | $927.54 | $30,266.09 | $1,172.00 | $37,816.13 | +$7,550.04 |
| Aug 2028 | $927.54 | $31,193.63 | $1,172.00 | $38,988.14 | +$7,794.50 |
| Sep 2028 | $927.54 | $32,121.17 | $1,172.00 | $40,160.14 | +$8,038.97 |
| Oct 2028 | $927.54 | $33,048.71 | $1,172.00 | $41,332.15 | +$8,283.44 |
| Nov 2028 | $927.54 | $33,976.25 | $1,172.00 | $42,504.15 | +$8,527.90 |
| Dec 2028 | $927.54 | $34,903.79 | $1,172.00 | $43,676.16 | +$8,772.37 |
| Jan 2029 | $927.54 | $35,831.33 | $1,172.00 | $44,848.16 | +$9,016.83 |
| Feb 2029 | $927.54 | $36,758.87 | $1,172.00 | $46,020.16 | +$9,261.30 |
| Mar 2029 | $2,422.54 | $39,181.41 | $1,172.00 | $47,192.17 | +$8,010.76 |
| Apr 2029 | $5,222.54 | $44,403.95 | $1,172.00 | $48,364.17 | +$3,960.23 |
| May 2029 | $927.54 | $45,331.48 | $1,172.00 | $49,536.18 | +$4,204.69 |
| Jun 2029 | $927.54 | $46,259.02 | $1,172.00 | $50,708.18 | +$4,449.16 |
| Jul 2029 | $927.54 | $47,186.56 | $1,172.00 | $51,880.19 | +$4,693.63 |
| Aug 2029 | $927.54 | $48,114.10 | $1,172.00 | $53,052.19 | +$4,938.09 |
| Sep 2029 | $927.54 | $49,041.64 | $1,172.00 | $54,224.20 | +$5,182.56 |
| Oct 2029 | $927.54 | $49,969.18 | $1,172.00 | $55,396.20 | +$5,427.02 |
| Nov 2029 | $927.54 | $50,896.72 | $1,172.00 | $56,568.21 | +$5,671.49 |
| Dec 2029 | $927.54 | $51,824.26 | $1,172.00 | $57,740.21 | +$5,915.95 |
| Jan 2030 | $927.54 | $52,751.80 | $1,172.00 | $58,912.22 | +$6,160.42 |
| Feb 2030 | $927.54 | $53,679.34 | $1,172.00 | $60,084.22 | +$6,404.89 |
| Mar 2030 | $927.54 | $54,606.87 | $1,172.00 | $61,256.23 | +$6,649.35 |
| Apr 2030 | $927.54 | $55,534.41 | $1,172.00 | $62,428.23 | +$6,893.82 |
| May 2030 | $927.54 | $56,461.95 | $1,172.00 | $63,600.24 | +$7,138.28 |
| Jun 2030 | $927.54 | $57,389.49 | $1,172.00 | $64,772.24 | +$7,382.75 |
| Jul 2030 | $927.54 | $58,317.03 | $1,172.00 | $65,944.25 | +$7,627.21 |
| Aug 2030 | $927.54 | $59,244.57 | $1,172.00 | $67,116.25 | +$7,871.68 |
| Sep 2030 | $927.54 | $60,172.11 | $1,172.00 | $68,288.25 | +$8,116.15 |
| Oct 2030 | $927.54 | $61,099.65 | $1,172.00 | $69,460.26 | +$8,360.61 |
| Nov 2030 | $927.54 | $62,027.19 | $1,172.00 | $70,632.26 | +$8,605.08 |
| Dec 2030 | $927.54 | $62,954.73 | $1,172.00 | $71,804.27 | +$8,849.54 |
| Jan 2031 | $927.54 | $63,882.27 | $1,172.00 | $72,976.27 | +$9,094.01 |
| Feb 2031 | $927.54 | $64,809.80 | $1,172.00 | $74,148.28 | +$9,338.47 |
| Mar 2031 | $927.54 | $65,737.34 | -$20,828.00 | $53,320.28 | -$12,417.06 |
This model compares standard cash-flow assumptions and does not include opportunity cost of capital, investment returns, or model-specific manufacturer incentives.
Lease vs Buy Decision Guide
Compare financing, mileage, and horizon assumptions to avoid misleading side-by-side cost conclusions.
Money factor vs APR
Lease financing uses money factor while loans use APR, so direct comparison requires normalization.
- Money factor is a lease financing metric, not a percentage rate label.
- Higher financing assumptions increase monthly outflow in both paths.
- Consistent assumptions are required for fair lease vs buy comparison.
Mileage and residual sensitivity
Driving behavior can materially change lease economics due to annual allowance and overage fees.
- Excess mileage fees can erase apparent lease savings.
- Higher annual mileage also influences fuel and maintenance assumptions.
- Residual assumptions drive buy-side resale outcome at horizon.
Horizon-based decision making
Lease vs buy outcomes vary by how long you keep the vehicle.
- Shorter horizons may favor lease structures in some profiles.
- Longer horizons may favor ownership when resale value remains strong.
- Use break-even month and cumulative curves to test scenarios.
FAQ
When is leasing usually cheaper than buying?
Leasing can be cheaper for shorter horizons, predictable mileage, and favorable lease terms, but this depends on fees and overage assumptions.
How does annual mileage affect the comparison?
Higher mileage can increase lease overage penalties and operating costs, often shifting advantage toward buying for high-mileage drivers.
Why does resale value matter for buying?
Resale value offsets ownership cost at your horizon. Lower-than-expected resale values can reduce buy-side advantage.
Are insurance and maintenance included?
Yes, when entered. Those recurring costs are included in monthly and cumulative outflow calculations.
Can taxes and fees change the winner?
Yes. Acquisition, disposition, title, registration, and sales tax structures can materially impact both lease and buy totals.
What does break-even month mean?
It marks the point where cumulative buy and lease costs intersect under your assumptions.
Does this include investment opportunity cost?
No. This model compares direct cash-flow assumptions and does not include investment return alternatives.