CompareMage

Money and financing

Lease vs Buy Calculator

Put a closed-end lease next to a purchase loan and compare cash over the lease term, plus whether the purchase path still holds equity.

Decision: Over this lease term, does leasing or buying use less cash — and what equity remains if I buy?

This comparison runs in your browser. CompareMage does not send the numbers you enter to our servers.

Lease path

Option A

6% APR is about 0.0025 as a money factor (APR ÷ 2400).

Buy path

Option B

Comparison result

The lease path uses less cash over the lease term.

Cash differs by $4,472.46 (23.52%). The buy path still has an estimated remaining balance of $12,213.70 and residual-based equity of $5,786.30.

Lower cash over the term
Lease
Lease monthly
$453.33
Buy monthly
$541.32
Buy remaining balance
$12,213.70
Lease versus buy cash
PathMonthlyCash over lease termPosition at term
Lease$453.33$19,015.00No vehicle unless you buy it out
Buy$541.32$23,487.46Equity estimate $5,786.30

How to read the result

Lower cash over the term means less money left the checking account in that window. The buy path may still be holding a car and a loan. Those are different positions, not a single “better” label.

Calculated facts

Totals, differences, and break-even figures come only from the values on this page. They describe the math, not what you should do.

Decision factors

Fit, risk, time, quality, and personal constraints stay outside the calculator. A cheaper path can still be the wrong path for those reasons.

Methodology

Lease payment is (cap cost − residual) / term plus (cap cost + residual) × money factor, where cap cost is price minus cap-cost reduction. Purchase payment is a standard amortizing loan on price minus down payment. Cash over the lease term is down payment plus fees plus monthly × term for the lease, and down payment plus monthly × overlapping months for the purchase. Remaining balance uses standard amortization. Equity estimate is residual minus remaining balance.

Assumptions

  • Closed-end lease with the residual you entered.
  • No sales tax, gap insurance, or dealer add-ons unless included in the numbers.
  • Residual is a user assumption, not a live appraisal.

Examples

36-month lease versus 60-month loan

A lower lease payment can still spend less cash over 36 months while leaving you with no car. The buy path may show a remaining balance and some residual equity.

How to use it

  1. Enter the negotiated price, residual, lease down payment, money factor, and term.
  2. Enter the purchase down payment, APR, and loan term.
  3. Compare monthly payments, cash over the lease term, and estimated buy-side equity.

Limits

  • Mileage limits, wear charges, and early-termination fees are not automatic.
  • This is not a dealer quote or credit decision.

Questions

What is a money factor?

It is the lease interest rate expressed as a small decimal. A rough conversion is APR ÷ 2400. A 6% APR is about a 0.0025 money factor. Enter the factor from the quote when you have it.

Why is residual value on both sides?

On the lease, residual is the value the lender assumes at term-end and is used in the payment. On the buy side, the same residual is a simple stand-in for what the car might be worth when the lease would have ended, so equity can be estimated as residual minus remaining loan balance.

Does this include mileage penalties or wear fees?

No. If you expect excess-mileage charges, add them to lease fees. The model is a payment-path comparison, not a full total-cost-of-ownership study.

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