Car Lease vs Buy Calculator (Canada)

Compare estimated monthly payments and total cost for leasing vs buying, using common dealer inputs.

Inputs

Vehicle price (CAD)

MSRP or negotiated price before tax.

Sales tax rate (%)

Enter your combined GST/HST/PST rate.

Comparison horizon (months)

We compare both options over the same period.

Expected resale / residual (%)

Used for lease residual and buy resale estimate.

Lease inputs

Lease cap cost (CAD)

Negotiated price used for lease (often below MSRP).

Lease rate input mode

Money factor is common in dealer worksheets.

Lease APR (%)

If you know money factor, switch mode above.

Money factor

If APR mode is selected, this is auto-derived (APR/2400).

Lease down payment (CAD)

Also called cap reduction. Optional.

Lease fees (CAD)

Acquisition/doc fees (one-time). Optional.

Disposition fee (end, CAD)

Sometimes charged at lease-end. Optional.

Security deposit (CAD)

Often refundable. We treat it as due at signing.

Buy / finance inputs

Down payment (CAD)

Cash down when buying. Optional.

Loan APR (%)

Typical auto finance rate. Set 0 for cash purchase.

Loan term (months)

Loan can be longer than the comparison horizon.

Buy fees (CAD)

Doc/admin fees. Optional.

Item	Lease	Buy
Depreciation	$0	—
Finance charge	$0	—
Tax	$0	$0
Total payment	$0	$0

How to use

Enter vehicle price, tax rate, and your comparison horizon.
For leasing, set cap cost, residual %, and APR or money factor.
For buying, set down payment, loan APR, and loan term.
Click Calculate and compare total costs, monthly payments, and charts.

Tip: If you only know lease APR, money factor is commonly approximated as APR/2400.

Lease vs Buy in Canada: how to compare the real cost

Leasing and buying often look similar on a dealer worksheet, but the long-term cost is driven by different mechanics. A lease payment is mainly depreciation (cap cost minus residual) plus a finance charge (money factor), with taxes added depending on your province and contract structure. When you buy, your payment comes from a standard loan amortization. This calculator compares both options over the same time horizon so you can see which choice is cheaper for your situation.

Start with the basics: enter the vehicle price and your combined sales tax rate (GST/HST/PST). Choose a comparison horizon (24–60 months). For leases, pay attention to the cap cost, residual percentage, and whether your rate is provided as APR or money factor. For buying, set your down payment, APR, loan term, and fees. Fees and end-of-lease charges can change the winner, so include them if they apply.

How to read the results: lease total cost includes due-at-signing (cap reduction, fees, deposit), monthly payments, and disposition fee if entered. Buy net cost is estimated as down payment + payments + fees − resale value after the same number of months. Resale value uses your residual/resale assumption, so treat it as a planning model (not a guarantee).

FAQ

Is leasing always cheaper monthly than buying?

Often it is, because you’re paying only for the depreciation portion. But fees, taxes, money factor, and residual % can reduce the gap. Compare total cost over the same months for a fair decision.

What is a money factor, and how do I convert it to APR?

Money factor is another way to express a lease interest rate. A common approximation is APR ≈ money factor × 2400. This calculator supports either input mode.

Does this calculator include Canadian taxes and fees?

You enter your sales tax rate and optional fees (acquisition/doc, disposition). Real contracts vary by province and deal structure, so treat results as estimates for comparison.

How accurate is the resale/residual estimate?

Lease residuals are set by the lender and may differ from market value. For buying, the resale percentage is a planning assumption. Use conservative values if you want a safer comparison.