A lease payment is usually lower than a loan payment, but at the end of a loan you own something. This calculator compares both over the same months, counting the value of the car you keep.
How the comparison works
Cost of leasing = due at signing + monthly payment × months + lease-end fees
Worked example: a $40,000 car over 36 months
Buying with $4,000 down and a 60-month loan at 6.35% means paying $749 a month. After 36 months you’ve paid $30,951, the car is worth about $23,200 (58% of its price) and you still owe $16,832, so you keep $6,368 of equity. The net cost of buying is about $24,580. Leasing at $617 a month with $3,000 due at signing and $400 in end fees costs about $25,610. In this example, buying costs about $1,030 less.
When each one tends to win
| Leasing tends to win when… | Buying tends to win when… |
|---|---|
| You want a new car every 2–3 years | You keep cars 6+ years |
| You drive under 10,000–12,000 miles a year | You drive a lot of miles |
| The maker offers subsidized lease deals | The model holds its value well |
| You can deduct it as a business vehicle | You want to modify the car |
Experian’s Q2 2026 report put the average new-car lease payment at $617 a month, versus $765 for a new-car loan.
Frequently asked questions
Where do I find the resale value?
Look up a three-year-old version of the model on Kelley Blue Book or Edmunds and compare it with its price when new. Many cars keep 50–65% after three years.
What is a money factor?
It’s a lease’s interest rate in a different format. Multiply it by 2,400 to get the approximate APR.
Can I buy the car at the end of the lease?
Usually, yes, at the residual value written in the contract.
Source: Experian, State of the Automotive Finance Market, Q2 2026. Estimates only.
