EV Lease vs Buy Calculator
Leasing an EV looks cheaper month to month, and the lease finance charge is often quoted as a money factor, not an APR. Enter both sides and compare the true out-of-pocket cost over the same period, accounting for the car's remaining value.
Updated November 7, 2026. By Driveonomics.
Pre-filled for you. Fields marked typical start with typical national averages so you see a result right away, change any number you know to make it yours.
Go ahead, play with it. Change any number and watch the total move.
Lease Lease
Buy Buy
Same vehicle price as the lease side is assumed.
Enter your numbers above to see the comparison.
Lease breakdown
Buy breakdown
Where the numbers come from: vehicle price, Kelley Blue Book, July 2026, average new electric car $56,126 · lease payment, Experian, Q2 2026, average new-vehicle lease payment $617 a month · lease term, Experian, Q2 2026, average lease 35.9 months · money factor, no national average is published; 0.00208 is the figure used in the guide · loan rate, Experian, Q2 2026, new-car average 6.35%, used 11.19% · loan term, Experian, Q2 2026, average new-car loan 69.5 months.
Calculation transparency
Jurisdiction. United States. Sales tax, titling, registration, and insurance rules are set by your state, so your exact lease and loan totals depend on where you buy and register the car.
Rules and time period. The lease total is the amount due at signing plus every monthly payment over the term you pick, from 24 to 48 months. The buy side covers the same months, with the loan running the term you pick, from 36 to 72 months. The car's end value uses the average new-car retention curve in the Formula section.
Scope and limitations. Educational estimate only. Lease figures exclude the disposition fee, excess-mileage charges, and wear-and-tear bills. The buy side excludes sales tax differences between leasing and buying, which vary by state. A lease worksheet or a buyer's order is the document that binds.
Source links checked November 7, 2026. Figures: Experian State of the Automotive Finance Market (Q2 2026); Kelley Blue Book average transaction prices (July 2026); iSeeCars five-year depreciation study (March 2026); Consumer Financial Protection Bureau auto-loan guidance; Regulation Z (12 CFR Part 1026); Regulation M (12 CFR Part 1013).
Primary sources: Experian, average car payment; Kelley Blue Book, July 2026 average transaction prices; iSeeCars, cars that hold their value study; CFPB, auto-loan shopping guidance; Regulation Z, 12 CFR Part 1026; Regulation M, 12 CFR Part 1013; Our methodology; Our sources.
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How the EV lease vs. buy comparison works
The tool compares two ways of paying for the same electric car over the same number of months, then reports the difference. The lease side adds the amount due at signing to every monthly payment over the term. The buy side adds the down payment to the loan payments made during the comparison period, adds any loan balance still owed at the end, and subtracts the car's estimated remaining value. Both sides start from the same vehicle price so the comparison stays apples to apples. The money factor is shown as an APR so the lease finance charge can be compared with the loan APR directly.
A worked comparison, using this calculator's own math
Lease side, with the starting inputs: $42,000 MSRP, $429 a month, $3,999 due at signing, 36 months, money factor 0.00208 (about 4.99% APR). Total out of pocket: $3,999 + ($429 x 36) = $19,443, and no car owned at the end.
Buy side, with the loan numbers above over the same 36 months: $5,000 down plus loan payments of about $724 a month, for $31,062 paid in total including the down payment, plus $16,252 still owed, minus the car's estimated value of $25,133. Net cost: $22,181, with a car worth about $25,133 and a loan balance of $16,252. That leaves about $8,881 in equity: value minus what is owed.
So with these inputs, the lease puts about $2,738 less cash out the door over 36 months, while the buyer ends up holding an asset worth about $8,881 more than the remaining loan. Battery coverage is a separate question from the payment math: the EV lease-or-buy guide lists battery warranties, and the lease term should be read against the battery warranty term before signing.
How the car's end value is estimated
The buy side estimates remaining value with an average new-car retention curve: roughly 80% of value retained after year one, 85% of the remainder after year two, and 88% of that after year three, compounding to about 59.8% after 36 months. On a $42,000 car that is $42,000 x 0.80 x 0.85 x 0.88 = $25,133. Electric cars in recent studies have depreciated faster than the average car, so treat this average-curve value as a planning figure and check real resale quotes for the model you are considering.
What this comparison leaves out
Lease figures here exclude the disposition fee charged at turn-in, excess-mileage charges, and wear-and-tear bills. The buy side excludes sales tax differences between leasing and buying, which vary by state, and any purchase incentives, which vary by buyer and model and should be entered as a lower price if they apply to you. Neither side includes insurance, charging, or maintenance. For the charging side alone, see the EV vs. gas calculator.
How to use
- Enter the vehicle price. The average new electric car sold for $56,126 (Kelley Blue Book, July 2026).
- Enter the lease payment and what is due at signing. The average new-vehicle lease payment was $617 a month (Experian, Q2 2026).
- Pick the lease term. The average lease ran 35.9 months (Experian, Q2 2026); 36 months is the usual term.
- Enter the buy side: down payment, loan APR, and loan term. The average new-car loan rate is 6.35% (Experian, Q2 2026), and the average new-car loan ran 69.5 months. The worked example uses 6.5%.
- Read the two totals side by side. The lease total is cash out the door with no car at the end; the buy net cost counts the car's remaining value, so compare the difference, not the monthly payment alone.
Formula
Lease total equals the amount due at signing plus the monthly payment times the term. Money factor as an APR is approximately the money factor times 2,400, so 0.00208 works out to about 4.99%.
Amount financed equals the vehicle price minus the down payment. The monthly payment comes from the standard amortizing loan formula: amount financed times the monthly rate times one plus the monthly rate raised to the term, divided by one plus the monthly rate raised to the term minus one, where the monthly rate is the APR divided by 100 divided by 12. If the APR is zero, the payment is the amount financed divided by the term.
The loan balance after a number of payments is the amount financed grown by the monthly rate over those payments, minus the payments made grown the same way. The car's value at the end uses an average new-car retention curve: about 80% of value kept after year one, 85% of the remainder after year two, and 88% of that after year three, compounding to about 59.8% after 36 months. The curve continues at 90% in year four and 92% in year five.
Buy net cost equals the down payment plus the loan payments made plus the remaining loan balance minus the car's value at the end. Equity equals the car's value at the end minus the remaining loan balance. The worked example uses a 6.5% loan APR; the Q2 2026 average new-car rate is 6.35% (Experian), so a borrower at the average rate would pay slightly less interest than the example shows.
The retention curve is an average-car curve, not an EV curve. iSeeCars (March 2026) measured electric cars losing 57.2% of value over five years, against 41.8% for the average car, so an electric car's real end value is likely lower than this calculator's estimate. Check real resale quotes for the model you are considering. The federal clean-vehicle credit is $0 in 2026: section 30D ended for vehicles acquired after September 30, 2025, under Public Law 119-21. Any incentive that still applies to you should be entered as a lower vehicle price.
Definitions
Money factor. The lease version of an interest rate. Multiply it by 2,400 to get the approximate annual percentage rate. A money factor of 0.00208 works out to about 4.99%.
Residual value. The value the leasing company expects the car to hold at the end of the lease. The lease payment covers the drop from the price to the residual value, plus a finance charge.
Capitalized cost. The price the lease is based on, after any down payment, trade-in, or rebate is applied. A lower capitalized cost means a lower monthly payment.
Disposition fee. The fee charged for returning the car at lease end, typically $300 to $500. Buying the car out avoids it; returning the car pays it. This calculator leaves it out of the lease total.
Buyout. Paying to keep the car when the lease ends, at the price written in the contract plus a fee and tax and title. The lease buyout page works through that math.
Equity. The car's value minus what is still owed on the loan. With the starting inputs, the buyer ends with about $8,881 in equity after 36 months.
Amortizing loan. A loan paid off in equal monthly payments, where each payment covers the interest due that month first and the rest reduces the balance.
EV lease vs. buy questions, answered
How do I compare a money factor with a loan APR?
Multiply the money factor by 2,400. A money factor of 0.00208 works out to about 4.99% APR, which is the figure used in the EV lease-or-buy guide. That puts the lease finance charge in the same units as the loan APR on the buy side.
Why is the EV lease payment lower than the buy payment?
A lease payment covers the car's expected loss in value during the term plus a finance charge, so it only pays for the portion of the car you use. A loan payment pays down the full price plus interest, which is why it is usually higher. The calculator adds every dollar on both sides so the payment figure never stands alone.
What does the buy side leave me with at the end?
A car and a loan balance. With the starting inputs, the car is worth about $25,133 after 36 months and about $16,252 is still owed, leaving about $8,881 in equity: value minus what is owed. The lease side leaves no car, but costs less cash out the door over the same period.
What is the disposition fee at the end of an EV lease?
The fee the leasing company charges for taking the car back when the lease ends. Disposition fees typically run $300 to $500, and the contract states the exact fee. This calculator leaves it out of the lease total, so add it to the lease side if your contract charges one. Buying the car out at the end avoids it.
Does the federal EV tax credit still apply to a lease?
No, not for a new lease. The section 30D clean-vehicle credit ended for vehicles acquired after September 30, 2025, under Public Law 119-21, so the credit is $0 in 2026. Before it ended, a lessor could pass the credit through as a lower lease payment; that no longer applies. Any incentive that still applies to you should be entered as a lower vehicle price.
Related: Compare a gas car the same way with the lease vs. buy calculator.
Related: See how your lease payment is built, line by line.
Related: Thinking past the lease term? See whether you should buy out your lease.
Educational estimates only, not financial advice. Lease figures exclude disposition fees, excess mileage, and wear charges. The car's estimated value uses typical average depreciation and varies widely by make, model, and market.
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