Lease vs Buy (with Residual)

Decide whether to lease a car with a residual or buy it outright.

Buy / finance

Vehicle price ($)

Down payment ($)

Finance term (months)

Finance APR %

Hold for (years)

Resale at end ($)

Lease

Term (months)

Money factor (e.g. 0.00125)

Residual value ($)

Buy monthly payment

$685

60-mo term, 6.50% APR

Lease monthly payment

$498

36-mo term • money factor × 24 ≈ APR 3%

Buy cost (cash + finance − resale)

$24,089

Lease cost (total paid, no equity)

$22,925

Lease costs $1,164 less, but you've built no equity. Buy is favored only if you keep the car longer than the lease term.

Money factor × 2400 ≈ APR. Mileage overage is typically 25¢/mi — run realistic miles before leasing.

About this tool

Compute the monthly lease payment, total cost over the term, and the opportunity gain from investing the cash difference. Based on r/askcarsales 'Full cash in hand - leasing (and investing) vs buying outright'.

Related tools

More calculators you might find useful.

Rent Affordability Calculator

Find out how much rent you can afford based on your income.

Shopify Shipping Simulator

Estimate shipping cost and margin on a Shopify order.

Appliance Energy Cost Calculator

Calculate how much an appliance costs you per month and per year.

Other categories

Looking for something different? Browse the rest of the catalog.

Suggest a tool