EV Lease vs. Buy Calculator
Set the loan term and lease term to the same length for an apples-to-apples comparison. This adds up total cash out the door for each path: financing nets out the car's resale value at the end since you keep it; leasing doesn't, since you hand the car back.
How this is calculated
Buying: your monthly loan payment comes from the standard amortization formula on (price − down payment) at your APR and term. Net cost to buy is down payment + all loan payments, minus the car's estimated resale value at the end of the term, because you still own an asset. Leasing: total cost is what's due at signing plus every monthly payment over the lease term, with nothing netted out since you return the car.
The number to be most skeptical of is the resale value estimate: EV resale values have been more volatile than gas cars' in recent years (new model releases and battery tech changes affect used EV prices more than used gas car prices). See our EV depreciation guide for real numbers on this, or check recent listings for your specific model at the age you'd be selling it rather than trusting a flat depreciation percentage.
Worked example
Using the defaults (a $42,000 EV, $3,000 down, 6.5% APR over 36 months, versus a lease at $449/month with $3,000 due at signing), the loan payment works out to $1,195/month. Over 36 months that's $3,000 + ($1,195 × 36) = $46,020 paid out, minus an estimated $23,000 resale value, for a net buying cost of $23,031. The lease costs $3,000 + ($449 × 36) = $19,164 total, with nothing to sell at the end since you hand the car back. In this example, leasing comes out about $3,867 cheaper, but that gap exists because the assumed resale value ($23,000, about 55% of the original price) is doing a lot of work. Push that resale estimate higher and buying can flip to the cheaper option, which is exactly why that number deserves the most scrutiny.
Frequently asked questions
Why do the loan and lease terms need to match?
If you compare a 60-month loan to a 36-month lease, you're comparing different amounts of car usage: the loan total includes 24 extra months of payments the lease scenario doesn't have. Matching the terms isolates the actual lease-vs-buy tradeoff.
Does this include taxes, fees, or mileage penalties?
No, sales tax, registration, and acquisition fees vary too much by state to default sensibly, and lease mileage overage fees depend on your specific contract and driving. Add your local tax rate to the vehicle price and factor in any lease mileage limits separately if you drive more than ~12,000 mi/year.
Does my credit score affect this comparison?
Yes, significantly: the APR you'd actually qualify for depends heavily on your credit score, and a few points of APR can shift the monthly loan payment meaningfully over a 36+ month term. Use the actual rate you've been quoted or pre-qualified for, not a generic average, for a comparison that reflects your real options.
Can lease terms be negotiated?
Some of them: the money factor (effectively the lease's interest rate), the vehicle's negotiated price, and sometimes the down payment are often negotiable, similar to buying. The residual value (the car's assumed worth at lease-end) is typically set by the leasing company based on standard depreciation formulas and isn't usually negotiable.
What if I want to switch cars before the loan or lease ends?
This is one of leasing's real advantages: ending a lease early usually means an early-termination fee, but it's typically far less financially painful than an auto loan, where you might owe more than the car is worth (negative equity) if you sell or trade in early, especially in the loan's first couple of years. If you tend to switch cars every 2-3 years, that risk asymmetry is worth weighing alongside the raw cost comparison.
Does leasing make more sense for EVs specifically?
Some buyers prefer leasing EVs because battery and charging technology is still improving quickly, and leasing sidesteps the risk of owning a car whose battery tech (or range) looks dated in a few years. It's a real consideration, but it's a preference about risk and technology change, not something this calculator's cost math can quantify for you.