Lease vs Buy EV Calculator

How the Lease vs Buy Calculation Works

This calculator compares both options over the same time period (the lease term) so you get an apples-to-apples comparison. For buying, it calculates your monthly loan payment using the standard amortization formula, then determines how much equity you have built at the end of the lease term by subtracting the remaining loan balance from the vehicle's depreciated value. For leasing, it totals your down payment plus monthly payments plus any excess mileage fees.

The "net cost" for buying is what you paid minus your equity (since you could sell the car). The net cost for leasing is simply everything you paid, since you return the vehicle with no equity. The winner is whichever option has the lower net cost.

Key Factors to Consider

• Depreciation is the biggest factor. EVs with strong resale values (like Tesla) tend to favor buying because you retain more equity. Models with steep depreciation curves favor leasing since you avoid that loss.
• The federal EV tax credit ended for vehicles acquired after September 30, 2025, so it no longer favors either option. State and utility rebates may still apply to both; ask whether a lessor passes any rebate through.
• Mileage matters significantly for leases. If you consistently drive over 12,000 miles per year, excess mileage fees add up quickly. High-mileage drivers almost always benefit from buying.
• Interest rates change the math. Low loan rates make buying more attractive. If rates are high, leasing effectively lets the manufacturer subsidize your cost through competitive lease rates.

When Leasing Makes Sense for EVs

EV technology is improving rapidly. Battery range, charging speed, and software features improve meaningfully every 2-3 years. Leasing lets you upgrade to the latest technology without worrying about selling a depreciating asset. It also protects you from the risk that battery degradation or technology shifts reduce your car's resale value more than expected.

When Buying Makes Sense for EVs

If you plan to keep the vehicle for 5+ years, buying is almost always cheaper. Once the loan is paid off, you drive payment-free while the car still has significant life. EV batteries are warrantied for 8 years/100,000 miles by federal mandate, and many last well beyond that. You also avoid mileage restrictions and end-of-lease wear-and-tear charges.