Lease the car, or buy it with a loan? The calculator counts both over the months of the lease. A buyer still owns the car at the end, so its value counts against the cost of buying.
Over 36 months, buying costs $1,860 less.
The 2026 LE Toyota RAV4, both ways
- Lease: total for 36 months
- $14,763
- Buy: down payment and 36 loan payments of $578
- $25,111
- Buy: loan still owed at that time
- $12,913
- Buy: value of the car at that time
- $25,121
- Buy: cost after you sell the car and pay off the loan
- $12,903
- Buying saves
- $1,860
The 7% loan rate and the 60-month loan are examples. Enter the rate that your lender offers. The value of the car starts at the residual value of the lease offer, which is the lease company's own estimate of the car's value when the lease ends.
Tax, insurance, repairs, and dealer fees are not counted.
How the comparison works
The lease costs the amount due at signing and the monthly payments, counted the same way as on every page of this site. The first payment is counted once.
The purchase costs the down payment and the loan payments over the same months. At the end of those months, the buyer has a car, and maybe a loan that is not yet paid. The value of the car, less the loan still owed, is what the buyer keeps. The calculator takes it off the cost of buying.
cost to buy = down payment + loan payments − (value of the car − loan still owed)
What changes the answer
- The price. Most buyers pay less than the MSRP. A lower price makes buying cheaper.
- The loan rate. A rate of 3% and a rate of 9% give very different results on the same car.
- The value at the end. A car that keeps its value well makes buying cheaper. The residual value of a lease is one estimate of that value.
- The time that you keep the car. This calculator stops at the end of the lease. A buyer who keeps the car for many more years pays nothing more for the car itself, and that often makes buying cheaper over the long term.
What the calculator leaves out
Sales tax, insurance, repairs, and fees. A lease also charges for miles above its limit and for damage when you return the car. A buyer pays for repairs after the warranty ends.