Lease or Purchase a Car Calculator

Let our calculator help steer you in the right direction.

Vehicle leasing has become increasingly popular. But it’s not the best route for everyone. This calculator will help you weigh several variables when it comes to deciding whether to lease or purchase a car – including upfront costs, financing rates, and monthly payments. Remember, while leasing can appear more favorable in the short run, you must eventually return the vehicle. A purchased car, truck, or SUV is yours to drive as long as you want.

Decide whether to lease or purchase a car with confidence.

• Purchase price: the total amount you agree to pay for the car, including the base price, dealer fees, and any add-ons
• Sales tax rate: the percentage added to the purchase price for tax
• Term: the length of time (in months) you have to repay your loan
• Down payment: the initial payment made toward the vehicle's purchase price
• Cash rebate: a refund from the dealer or manufacturer that lowers the purchase price
• Interest rate: the annual percentage rate (APR) associated with your loan
• Acquisition fee: an upfront cost to start a car lease, usually included in the lease agreement
• Capitalized cost reduction: a payment made upfront that lowers your monthly lease payments, similar to a down payment on a purchase
• Residual value: the estimated worth of the car at the end of the lease, set by the leasing company
• Money factor: the cost of financing the lease, similar to an interest rate. To find the effective interest rate, multiply the money factor by 24