My Business Math
← All calculators
Vehicle · Free calculator

Lease or buy?

The total cost of leasing versus buying over the same months, with Minnesota tax, mileage fees and resale value. No account needed.

Your numbers

Answer each Yes/No question, then fill in the amounts that appear. Use 0 only when an amount is truly zero. Want to see how it works first? Load example numbers below.

Will the car be registered and kept in Minnesota?

We use Minnesota’s lease tax (6.875% plus any local sales tax, paid up front when you sign) and its 6.875% motor vehicle sales tax for buying.

The manufacturer’s suggested retail price on the window sticker. For example, 42,000. The residual is a percent of this number.
The selling price before tax, after any rebate. On a lease this is the “capitalized cost”. For example, 40,000. It is the same price whether you lease or buy.
What the leasing company says the car will be worth when the lease ends. For example, 58 for a 36-month lease. We also use it as the car’s value if you buy, so the comparison is fair.
Money factor × 2,400 = APR. We convert either way.
A small decimal on the lease worksheet. For example, 0.00250, which equals a 6% APR.
We compare both choices over these same months.
On a lease this is the capitalized cost reduction; on a loan it is the down payment. We use the same amount for both. For example, 2,000. The first lease payment and the fees are counted separately.
The leasing company’s fee to set up the lease, usually added to the lease. For example, 895. Minnesota doesn’t tax it.
Charged at the end if you return the car instead of buying it or leasing another from the same brand. For example, 395.
Miles over this, for the whole lease, are charged when you turn the car in.
For example, 0.25 a mile. It is in the lease contract, often 15 to 30 cents.
From your odometer: miles now minus a year ago. For example, 13,000.
Minnesota taxes a lease at 6.875% plus any local sales tax where the car is garaged. Enter only the local part. For example, 0.5. The Minnesota Department of Revenue’s rate lookup shows it for your address; enter 0 if there is none.
From a lender’s or dealer’s offer. For example, 6.9.
We count the loan payments you make during the lease months, then what you still owe on the loan at the end.

Your answer shows up here.

Answer the questions, then press Calculate.
Or load example numbers to see how it works.

Free · no sign-up needed
Assumptions, sources & limitations

Planning estimates only. Not a tax return, filing, payment, lending quote or personalized advice. Results depend on complete and accurate inputs. No guarantee of savings or penalty protection. Tax figures checked October 31, 2026; changes and special rules may apply. This initial release needs firm validation before client reliance.