Lease vs. buy comparisons are challenging because the two options cover different time periods and leave you in different financial positions. This calculator normalizes both over your lease term. Lease cost = due-at-signing + monthly payments + any excess mileage fees. Buy cost = down payment + loan payments over the same period, minus estimated resale value. Enter your actual quote and loan terms for the most accurate result.
How the numbers are worked out
On the lease side, excess mileage fees are calculated by comparing your actual annual mileage to the lease’s allowed mileage, prorated for the lease term, then multiplying any overage by your per-mile rate. On the buy side, the monthly loan payment is calculated using a standard amortization formula based on the vehicle’s net price after down payment and incentives, your APR, and your loan term in months. Because loan terms are often longer than lease terms, only the buy payments that fall within the comparison period are counted, alongside the estimated resale value of the vehicle at that point, so both options are measured over the same stretch of time.
What the calculator does not account for
Insurance, registration fees, and sales tax apply to both options fairly similarly and are left out so they do not distort the comparison. Actual resale value depends heavily on the specific make, model, trim, mileage, and condition, and can move with market conditions between now and the end of your term, so treat the resale figure as a planning estimate rather than a guarantee. Incentive eligibility for leases versus purchases also varies by program, since some rebates only apply to one or the other. Check our Tax Credits and Incentives page for details on what applies in your state.
- Drive within the mileage limit
- Want a new EV every 2–3 years
- Don't want to worry about battery degradation
- Prefer lower monthly payments
- Can claim the lease tax credit (commercial vehicle credit)
- Drive more miles than a typical lease allows
- Plan to own the vehicle long-term
- Want to build equity and own an asset
- May want to modify or customize the car
- Qualify for a direct purchase incentive
Incentives: The incentives field applies a simple dollar reduction to illustrate potential impact. Actual incentive eligibility is complex and changes frequently. Whether a given incentive applies to a lease vs. a purchase, the income limits, vehicle price caps, and transfer rules all vary by program and are subject to change. Our Incentives page is a reference tool. It is not a determination of your eligibility. Always confirm current incentive terms directly with the program source (your state energy office, utility provider, or a qualified tax professional) before making any financial decision.
Does not include insurance, registration fees, sales tax, or maintenance costs as these apply to both options and should be evaluated separately. EV depreciation varies significantly by make, model, trim, mileage, and market conditions.