Car Buy vs Lease Calculator
Enter the car price, loan terms, and lease quote to see which costs less over your ownership period.
Runs entirely in your browser — your numbers never leave this page.
How it works
Buying: you pay down payment + EMIs, then recover the resale value. Leasing: you pay monthly for use, then walk away:
- Buy math: down + (EMI × months paid) − resale at sale time.
- Lease math: monthly lease × months. Simple — but you own nothing at the end.
- Break-even: buying pulls ahead the longer you keep the car — EMIs end, but the car keeps running. Leasing never ends.
- Resale is king: a Maruti/Hyundai holding 55% after 5 years vs a slow seller at 35% flips the verdict.
- Lease fine print: mileage caps, wear-and-tear charges, and early-termination penalties can dwarf the monthly quote.
- Business use: lease payments are often fully deductible as business expense — changes the math for the self-employed.
Frequently asked questions
Is it cheaper to buy or lease a car?
Buying usually wins over 5+ years; leasing wins for 2–3 year holds with zero resale hassle. Run your numbers — resale value decides it.
How is lease cost calculated?
Monthly lease payment × months. There's no asset at the end — you're paying purely for use.
What resale value should I assume?
Popular models: ~50–55% after 5 years. Slow sellers: 30–40%. Check used-car listings for your exact model.
Are there hidden lease charges?
Yes — mileage overage, excess wear, and early termination fees. Read the agreement; the monthly quote isn't the whole story.
Is leasing good for business use?
Often — lease rentals are generally deductible as business expenditure, which can beat depreciation benefits of ownership.
What if I sell before the loan ends?
You repay the outstanding loan from the sale price and keep the difference. This calculator nets resale against everything paid.
Does a bigger down payment help?
It cuts interest and EMI but doesn't change the buy-vs-lease verdict much — the same cash is "spent" either way.
What about maintenance costs?
Owned cars past warranty cost more to maintain; leases usually stay within warranty. Add ~Rs 30k–50k/year for an older owned car.
Can I buy the car after the lease?
Some leases offer a buyout price. Compare it against the used-market price — buyouts are sometimes above market.
Which is better for low running?
Low annual km favors buying (less depreciation from use) — leases charge for mileage you don't drive.