When does buying become cheaper than leasing?

The break-even point depends on your planned ownership period, annual mileage, and the specific terms of both options. The calculator will show you the approximate month where total costs cross, helping you make an informed decision.

Buy vs Lease Calculator

Compare buying vs leasing

1) Your Usage

Planned Ownership (months)

Miles per Year

2) Buying Inputs

Purchase Price ($)

Down Payment ($)

APR (%)

Loan Term (Years)

3) Leasing Inputs

MSRP ($)

Residual Value ($)

Money Factor

Lease Term (Months)

Due at Signing ($)

Acquisition/Doc Fees ($)

4) Assumptions

Sales Tax Rate (%)

Annual Depreciation (%)

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Buy vs Lease Break-Even Calculator

Find when buying becomes cheaper than leasing (or vice versa) based on how long you'll keep the car and how much you drive.

How this works

We estimate buying costs as down payment + payments through your horizon + remaining balance âˆ’ estimated resale value. Leasing costs include down/payment through your horizon plus estimated mileage overage and disposition at lease end. We then highlight an approximate month where the total costs cross.

Educational estimate only. We are not a lender, broker, or financial advisor. Assumes simple depreciation curve and mileage adjustment. Market values, tax treatment, incentives, and fees vary.

Related Tools

Lease Calculator - Estimate lease payment and total cost.
Auto Loan Calculator - Payment, total interest, and financed cost.
Lease Buyout Calculator - Include tax and fees to evaluate a buyout.
Total Cost of Ownership Calculator - See true 5-year costs for both options.

Use Cases

Break-Even: Buy vs Lease - Step-by-step playbook.
Lease vs Buy - Total cost comparison guidance.