US Car Lease vs. Buy Calculator (36-Month TCO Analysis)
Compare monthly payments, total cash outlay, vehicle equity, and net true cost of ownership between leasing and financing a car in the US.
Compare monthly payments, total cash outlay, vehicle equity, and net true cost of ownership between leasing and financing a car in the US.
Compare monthly payments, total cash outlay, vehicle equity, and net true cost of ownership between leasing and financing a car in the US. Calculate exact, penny-accurate projections compliant with 2026 IRS • St. Louis FED (FRED) standards using Calconova's deterministic IEEE-754 (Decimal.js) calculation engine with instant breakdowns.
While leasing saves $183.39/mo in monthly cash flow, buying builds $7,813.56 in retained vehicle equity.
\text{Payment} = \left( \frac{\text{Net Cap Cost} - \text{Residual}}{n} + (\text{Net Cap Cost} + \text{Residual}) \times \text{MF} \right) \times (1 + \tau_{\text{tax}})Sum of monthly depreciation charge and finance fee (money factor applied to cap cost plus residual), adjusted for sales tax and compared against net equity in vehicle ownership.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, underwriting, or legal advice. Actual interest rates, closing costs, lender fees, and statutory criteria may vary. Calconova explicitly disclaims all liability for any financial decisions or actions taken based upon these calculations. Users are strongly advised to consult a certified financial planner, CPA, or licensed lending officer prior to executing financial commitments.
The Money Factor (also called Lease Factor) represents the financing interest rate charged by the lease finance company. To convert a Money Factor to standard APR, multiply it by 2,400. For example, a money factor of 0.0025 equates to an APR of 6.00% (0.0025 × 2400 = 6.0%).
When you lease, you only pay for the vehicle's depreciation during the 36-month term plus finance fees, rather than the entire purchase price of the car. However, at the end of the lease, you return the car with zero retained equity unless you exercise the buyout option.
Net True Cost subtracts your vehicle's resale value and accumulated equity from all out-of-pocket cash payments made. While buying has higher monthly payments upfront, the substantial equity retained in the asset significantly lowers your true net cost compared to perpetual leasing.
Leasing is advantageous if: 1) You deduct vehicle expenses for business (Section 179 / IRS business lease deductions); 2) You trade cars every 2–3 years and want warranty coverage; or 3) You want the lowest possible monthly cash outlay without long-term vehicle commitment.
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