Is leasing a waste of money?

Not necessarily. Leasing provides a new car with lower monthly costs and often includes maintenance. It's a lifestyle choice - you're paying for convenience and always having a new car, not building an asset.

Can I buy the car at the end of a lease?

Yes, most leases include a buyout option at the residual value. This can be good if the car is worth more than the residual, or bad if it's worth less.

What are the hidden costs of leasing?

Excess km fees, wear and tear charges, early termination fees, and the fact you own nothing at the end. Also, insurance on leased cars is often higher.

§ Tool · tier 1 · independent

Lease vs Buy Calculator.

Compare the cost of leasing versus buying a car outright

CalculatorFree, no signupOn-deviceupd May 2026

Inputs

Your numbers

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Lease or buy? Each has pros and cons for different situations. This calculator compares the total cost and helps you decide which option suits your lifestyle and budget.

§ Worked examples

Real-world scenarios

3-Year Comparison

$45,000 car: Lease at $650/month for 36 months ($18,000 residual) vs buy at 7.5% for 60 months.

Inputs

price:45,000lease:650leaseTerm:36loanRate:7.5

Leasing costs $23,400 over 3 years with nothing at the end. Buying: $27,000 in payments but $25,000+ in equity.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Residual Value

The guaranteed future value at lease end - the price to buy the car if you want to keep it.

Kilometer Allowance

Maximum km included in the lease. Excess km attract fees of 10-30 cents/km.

Equity

The value you've built in an owned car (market value minus remaining loan).

§ Pair it with

Related tools

Car Loan Calculator

Calculate buying costs

Novated Lease Calculator

Salary sacrifice car leasing

Total Cost of Ownership

Full cost comparison

How to use

01Enter the vehicle price
02Add the monthly lease payment quoted
03Include the lease term and residual buyout
04Compare with loan rates for buying
05Factor in your annual driving distance

Key info

Leasing = lower payments, but you don't own the car
Buying = higher payments, but you build equity
Leases have kilometer limits (typically 15,000-20,000/year)
Excess km fees can add thousands at lease end

Pro tips

Leasing suits people who want a new car every 3-4 years
Buying is better if you plan to keep the car 5+ years
Calculator doesn't include maintenance - leases often include this
Consider novated lease for tax benefits if salary packaging

Avoid these

Comparing only monthly payments, not total cost
Underestimating annual kilometers on a lease
Forgetting that leased cars must be maintained and returned in good condition
Not considering what you'll do at lease end

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026