Buy vs Lease Vehicle Calculator
Compare the true cost of buying vs leasing a vehicle. See Total Cost of Ownership, breakeven analysis, and how each choice affects your path to financial independence.
- Calculate Total Cost of Ownership for both options.
- Find the breakeven year when buying wins.
- Factor in EV credits and Section 179 deductions.
- See residual values by vehicle type.
- Calculate FIRE timeline opportunity cost.
- Save and compare multiple scenarios.
Making the Right Vehicle Decision
The buy vs lease decision depends on your driving habits, financial situation, and preferences. Neither option is universally better. This calculator helps you see beyond monthly payments by comparing Total Cost of Ownership over time. We factor in depreciation, financing costs, opportunity cost of your down payment, maintenance, insurance, and potential tax benefits for EVs and business use.
Key Lease Terms Explained
Money Factor
The lease equivalent of an interest rate. Multiply by 2,400 to convert to APR.
Example: 0.00125 × 2,400 = 3% APR
Residual Value
The predicted value at lease end, as a percentage of MSRP. Higher residuals mean lower payments.
Good: Trucks 55-65%, Japanese SUVs 50-60%
Cap Cost
The "capitalized cost" is the negotiated vehicle price. Lower cap cost means lower payments.
Tip: Always negotiate cap cost like a purchase price
Mileage Allowance
Annual miles included in the lease. Excess miles cost $0.15-$0.25 per mile.
Common: 10K, 12K, or 15K miles per year
Down Payment Warning
Never put a large down payment on a lease. If the car is totaled, you lose that money—gap insurance typically doesn't cover down payments. Keep the cap cost reduction minimal and accept slightly higher monthly payments.
Related Tools
Rent vs Buy Calculator
Compare the true costs of renting versus buying a home. Calculator includes breakeven analysis, 5% rule, opportunity cost, FIRE timeline impact, and scenario comparison for data-driven housing decisions.
Try it nowFIRE Calculator
Complete FIRE planning toolkit. Choose between a comprehensive calculator with Monte Carlo simulation and 5 FIRE variants, or a focused Coast FIRE calculator for compound growth planning.
Try it nowTax Optimization Advisor
Calculate 2025 federal and state income taxes, compare filing statuses, and discover tax optimization strategies. Includes bracket visualization and 50-state coverage.
Try it now