With leases, it can be hard to calculate how much you’ll end up paying in total. You can use this lease vs. buy calculator to find out how much a lease will cost you compared to buying the
vehicle outright.

i1=This is the amount that you will pay for the car including any and all dealership fees and
expenses.
i2=The downpayment is the money you will be required to put upfront for a lease.
i3= The sales tax rate is the rate your city or county charges on all sales.
i4= This is the interest rate that the dealership will charge you

Buy or Lease?


Vehicle Information:

Purchase price: $20,000
0
100k
Downpayment: $1,000
0
100k
Sales Tax rate: 6%
0%
30%
Investment Rate of Return: 7%
0%
12%

Buy Option Payment: $408.58

Loan Terms in Months: 60
12
360
Interest rate: 8%
0%
20%
Other Fees: $0
0
100k
Annual Depreciation: 20%
0%
25%
Net cost of buying: $11,226.29

Lease Option Payment: $420.39

Lease Terms in Months: 23
12
360
Interest rate: 8%
0%
20%
Other Fees: $100
0
50k
Residual Percent: 60%
0%
95%
Security Deposit: $500
0
100k
Net cost of lease: $11,421.12

Net Cost of Buying vs. Leasing