Lease vs Buy Calculator Widget
Compare a car lease with buying on a level field. The lease side adds the money due at signing, the monthly payments, fees and any excess-mileage charge; the buy side adds the down payment and loan payments, plus what is still owed, minus what the car is worth when the lease would have ended.
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<iframe src="https://a2z.tools/embed/w/lease-vs-buy-calculator" title="Lease vs Buy Calculator by A2Z Tools" width="100%" height="940" style="border:0;width:100%" loading="lazy" allow="clipboard-write"></iframe>
A plain iframe. Works everywhere, including site builders that strip scripts. Adjust height if your content needs more room.
<div data-a2z-widget="lease-vs-buy-calculator" data-height="940"></div> <script async src="https://a2z.tools/embed.js"></script>
Adds a small script (what it does) that sizes the widget to fit its content, loads it lazily and keeps it isolated from your page's CSS.
Works with
How it works
Both options are measured over the lease term. Leasing costs the amount due at signing (excluding the first monthly payment, which is counted with the others), every monthly payment, acquisition or disposition fees and the expected excess distance times the per-mile or per-km charge. Buying starts with the down payment; the rest is financed with a level-payment loan at the rate and term you enter. Over the lease term you make some or all of those payments, and if the loan is longer than the lease, the balance still owed is added - the closed-form balance after k payments. The car's expected market value at that point is subtracted, because you could sell it. The result is the net cost of each path, its monthly equivalent and which is cheaper. With a 0% loan on a $30,000 car, 36 payments of $500 leave $12,000 owed; selling for $18,000 makes buying cost $12,000 net, against $12,800 for a $300 lease with $2,000 due at signing.
Calculation method
- Lease cost = due at signing + monthly x term + fees + excess distance x charge
- Loan payment = P x r / (1 - (1 + r)^-n), P = price - down payment
- Balance after k payments = P(1 + r)^k - payment x ((1 + r)^k - 1) / r
- Buy net cost = down payment + payments made in the term + balance owed - resale value
- Monthly equivalent = net cost / term
Worked examples
Zero-percent offer
Inputs: 36-month lease at $300 with $2,000 due; or buy for $30,000, nothing down, 0% over 60 months, worth $18,000 after 36 months
Result: Lease $12,800; buy net $12,000 - buying is cheaper by $800
36 x $500 = $18,000 paid, $12,000 still owed, $18,000 back from the sale.
Typical financed purchase
Inputs: Lease $400 a month, $3,000 due, $500 fees for 36 months; or buy $35,000 with $5,000 down at 6.5% over 60 months, worth $21,000 at 36 months
Result: Lease $17,900; buy net $18,308 - leasing is cheaper by $408
The loan payment is $586.98 and $13,177 is still owed when the lease would end.
An illustration for comparing offers, not financial advice. Read the lease and loan contracts for actual terms.
Limitations
- Sales tax, insurance, maintenance, wear-and-tear charges and the return the down payment could earn are excluded.
- The resale value is the visitor's estimate; used-car prices can move a lot in three years.
- Assumes the loan has no early-repayment charge when the car is sold.
Where publishers use it
- A car dealer's finance page next to lease specials
- A consumer magazine article on leasing versus financing
- A small-business blog on company vehicles
- A credit union's auto loan page
- A personal-finance course module on big purchases
Questions
Why compare over the lease term only?
Because that is when the two choices diverge. After 36 months the lessee hands the car back and the buyer owns a three-year-old car. Subtracting its resale value puts both on the same footing; the buyer is free to keep driving it, which this comparison does not value.
Where do I get the resale value?
Use the lease's residual value as a starting point - it is the lessor's own forecast of the car's worth at lease end - or check used-car guides for three-year-old examples of the model. A higher resale value makes buying look better.
What counts as due at signing?
The down payment or capitalised cost reduction, the acquisition fee if paid up front, taxes on the down payment and the first month's payment. Enter the total without the first monthly payment, which the widget already counts.
How are excess-mileage charges handled?
Estimate how far over the allowance you will drive and the charge per mile or km in the contract. 3,000 extra miles at $0.25 adds $750. Most standard leases allow 15,000 miles a year or fewer, according to the FTC.
Is the money in the down payment free?
No, but the widget does not charge for it. A $5,000 down payment that could have earned 4% would have earned about $600 over three years; add that to the buy side if you want to account for it.
Does it include sales tax and insurance?
No. Sales tax treatment differs - many places tax lease payments as you go but tax a purchase up front - and insurance requirements on leases are often higher. Add them to each side if they matter.
Sources
- Financing or Leasing a Car - U.S. Federal Trade Commission . Lease payments are usually lower than finance payments; most standard leases allow 15,000 miles a year or less and charge extra above the limit. Checked 2026-10-01.
Cite or recommend this tool
If you reference this tool in an article, course or documentation, these formats are ready to copy. They are optional - nothing is added to your site unless you paste it.
A2Z Tools Lease vs Buy Calculator https://a2z.tools/embed/lease-vs-buy-calculator
<a href="https://a2z.tools/embed/lease-vs-buy-calculator">A2Z Tools Lease vs Buy Calculator</a>
[A2Z Tools Lease vs Buy Calculator](https://a2z.tools/embed/lease-vs-buy-calculator)
Lease vs Buy Calculator by A2Z Tools - https://a2z.tools/embed/lease-vs-buy-calculator
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