Lease vs Buy Calculator
CalculatorCompare the cost of leasing versus buying a car outright
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.
Enter Your Details
Enter Your Details
Real-World Examples
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 Used:
Leasing costs $23,400 over 3 years with nothing at the end. Buying: $27,000 in payments but $25,000+ in equity.
Frequently Asked Questions
Glossary
How to Use
- 1Enter the vehicle price
- 2Add the monthly lease payment quoted
- 3Include the lease term and residual buyout
- 4Compare with loan rates for buying
- 5Factor in your annual driving distance
Key Information
- 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 Mistakes
- 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: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.
Last updated: February 2026