Compare total cost of leasing vs buying a vehicle with residual value, opportunity cost, and breakeven mileage analysis.
This calculator compares leasing and buying over the same vehicle-use period, including the value a purchased car retains at the end. It also accounts for the opportunity cost of money committed to either option and examines how mileage can change the comparison. The common surprise is that the smaller monthly payment is not necessarily the cheaper choice. A buyer keeps an asset with residual value, while a lease may become more expensive when expected driving exceeds its included mileage.
The calculator converts the entered lease and purchase terms into comparable total costs for the selected period. For buying, the remaining vehicle value offsets part of the amount spent. Opportunity cost reflects the return that money committed to payments or upfront costs could otherwise have earned. The resulting difference identifies which option has the lower modeled cost.
The breakeven mileage analysis evaluates when mileage-dependent lease charges change the preferred option. It uses the entered mileage allowance, expected driving, and excess-mile charge where applicable. The crossover is an economic comparison point, not permission to exceed a lease limit. The signed contract determines the actual allowance, charge rate, and treatment of unused miles.
No. Monthly payment omits important differences between leasing and buying. Buying can require larger payments while leaving you with a vehicle that still has value. Leasing can have upfront, disposition, and excess-mile costs without transferring ownership. Compare total modeled cost, residual value, and the same time horizon rather than payment size alone.
No. It identifies the crossover produced by the values entered, including any mileage allowance and per-mile charge. Changing the lease terms, residual-value estimate, financing cost, or opportunity-cost rate can move that point. It also does not predict repair costs, vehicle condition charges, or future market prices unless those amounts are represented in the inputs.
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