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Buy vs Lease Car Calculator — True 3-Year Total Cost Comparison

Compare the all-in cost of buying vs leasing the same car over 3 years, including depreciation, opportunity cost of down payment, equity at end, and monthly outlay.

Quick answer: Buying usually wins when you keep a car long enough to build equity; leasing can win for lower short-term payments and frequent upgrades. Compare total cost, mileage limits, depreciation, and fees.

Buy — Monthly Loan Payment
$646
Buy — Monthly Loan Payment
$646
Amount Financed
$33,000
Buy — Total Out of Pocket
$43,741
Car Value After Comparison Period
$14,332
Side-by-side comparison
Buy — Net Cost (total paid minus car value)
29,409
Assumed Lease Starts During Comparison Period
2
Lease — Total Paid Over Period
$37,400
Signed Lease Cost Minus Buy Cost
$7,991
Diagnostic

The signed lease-cost-minus-buy-cost difference is $7,991; positive favors buying under the entered assumptions.

The model assumes 2 lease starts over the comparison period and the same monthly lease terms each time.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare simplified buying and repeated-leasing cash-cost scenarios over an entered period.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Use the linked guide or product page for the next step

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Reviewed Jul 17, 2026 · Methodology

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Navy Federal CU
Checked Jul 17, 2026
3.89%APR
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Frequently Asked Questions

Everything you need to know.

Is it better to buy or lease a car?
It depends on your mileage, how often you want to switch cars, and whether you care about ownership. Leasing is better if you drive under 12,000 miles/year, want a new car every 3 years, and do not mind never owning the vehicle. Buying is better if you drive more, want to own an asset, or plan to keep the car past the loan payoff. The math usually favors buying when you hold the car 5+ years.
What is the money factor in a lease?
The money factor is the lease equivalent of an interest rate, expressed as a decimal (e.g., 0.00125 = 3% APR). Multiply the money factor by 2,400 to convert to an approximate APR. A money factor above 0.00200 (4.8% APR) is generally unfavorable for a new car lease in a normal rate environment.
Is the Buy vs Lease Car Calculator — True 3-Year Total Cost Comparison free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Buy vs Lease Car Calculator — True 3-Year Total Cost Comparison affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare auto loan rates, or run Money Map to compare this loans & credit decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (auto) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Leasing looks cheaper month-to-month but you own nothing at the end. Buying looks expensive upfront but builds equity you can sell or trade in. The true comparison requires accounting for the down payment, residual value, tax treatment, and what you actually pay over the same time horizon — this calculator does all of that.

How to Use It

  1. 1Enter your numbers in the input panel.
  2. 2Review the live results and interpretation on the right.
  3. 3Use the compare outputs to compare options or plan the next step.
  4. 4Use the related links below if you want to move from analysis to action.
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