Over the same years, does leasing or buying leave you better off? Compare total cost.
A lease-vs-buy car calculator compares the total cost of leasing a vehicle with buying one over the same period, netting out the resale value you keep when you buy.
Leasing pays for the depreciation you use over a few years plus a rent charge, then you hand the car back. Buying pays for the whole car but leaves you owning an asset with resale value. The fair comparison is total cash out over the lease term minus what the purchased car is worth at the end, the equity you keep.
Leases usually have lower monthly payments but never stop (you're always making a car payment), while a bought car is eventually paid off and payment-free. Leases also cap mileage and charge for wear, whereas ownership is yours to drive and modify. Someone who keeps cars a long time usually comes out ahead buying; someone who wants a new car every few years may prefer leasing.
Over the long run, buying is usually cheaper because you keep the car's resale value. Leasing has lower payments but never builds equity. The calculator compares net cost.
Because when you buy, you own an asset you can sell. Subtracting its resale value from what you paid gives the true cost of ownership.
If you want a new car every few years, drive within the mileage cap, and prefer lower payments over building equity.
See the exact formula and a worked example on our methodology page.