EV Lease vs. Buy Calculator
How to Use This Calculator
- 1
Enter the EV purchase assumptions
Set Vehicle Price, EV Incentive, Down Payment (Buy), Loan APR, Loan Term, and Resale Value After Term. The incentive is applied to the buy calculation, not the lease.
- 2
Enter the lease offer
Enter Lease Down Payment, Lease Monthly Payment, and Lease Term. Use the advertised payment before taxes and fees if those costs are not included in the offer.
- 3
Compare modeled costs and payments
Review Buy Net Cost, Lease Total Cost, and the monthly buy payment. The result compares the entered loan and lease terms, which can differ in length.
Example Calculation
A buyer considers a $45,000 EV with a $7,500 purchase incentive, $5,000 down, a 6.5% APR for 60 months, and a projected $20,000 resale value. The alternative lease requires $3,000 down and $450 per month for 36 months.
Vehicle Price ($)
45,000
EV Incentive ($)
7,500
Down Payment (Buy) ($)
5,000
Loan APR (%)
6.5
Loan Term (mo)
60
Resale Value After Term ($)
20,000
Lease Down Payment ($)
3,000
Lease Monthly Payment ($)
450
Lease Term (mo)
36
Results
Better Option
Lease by $3,954
Buy Net Cost
$23,154
Lease Total Cost
$19,200
Buy Monthly Payment
$635.90
EV Incentive Applied
$7,500
Vehicle Depreciation
$25,000
Insights card shows the modeled buy and lease costs and their difference.
Tips
A $3,000 lower resale value adds $3,000 to modeled buy cost
Change Resale Value After Term from $20,000 to $17,000. Buy Net Cost rises by $3,000, while the loan payment stays unchanged.
A longer loan reduces the payment but increases the comparison period
Change Loan Term from 60 to 72 months. The monthly payment falls, but compare the resulting buy cost with a lease on the same ownership horizon before deciding.
Test the lease payment from a real written offer
Change Lease Monthly Payment from $450 to $500. Over the 36-month lease, that $50 increase adds $1,800 to lease payments before taxes or fees.
What this calculator compares
An EV lease-versus-buy comparison estimates the cost of financing and later selling a vehicle against the payments and upfront amount for a lease. The result depends heavily on resale value, the incentive entered, and the two contract terms; it is not a full ownership-cost or cash-flow analysis.
How the buy and lease estimates work
The buy estimate uses an amortizing loan payment and subtracts the estimated resale value from the down payment and loan payments. The lease estimate adds the lease down payment to all monthly lease payments.
Amount financed = Vehicle Price − EV Incentive − Down Payment (Buy)
Monthly loan payment = Amount financed × monthly rate
÷ [1 − (1 + monthly rate)^(−Loan Term)]
Buy net cost = Down Payment (Buy) + (Monthly loan payment × Loan Term)
− Resale Value After Term
Lease total cost = Lease Down Payment
+ (Lease Monthly Payment × Lease Term)
For the guide scenario, the amount financed is $45,000 − $7,500 − $5,000 = $32,500. The monthly rate is 6.5% ÷ 12 = 0.5417%; amortizing $32,500 over 60 months gives a payment of about $635.90. The modeled buy cost is $5,000 + ($635.90 × 60) − $20,000 = about $23,154. The lease total is $3,000 + ($450 × 36) = $19,200.
The terms differ: the loan estimate covers 60 months, while the lease estimate covers 36. The simple totals therefore compare different time periods. Use matching terms where possible and include the cost of replacing or keeping the car after either agreement ends.
Which assumptions can change the decision?
Resale value is a major uncertainty: every $1,000 change in the estimated value changes the modeled buy cost by $1,000. The loan APR affects the payment and total interest, while the lease’s upfront amount and monthly payment determine its modeled total.
| Change from the guide scenario | Effect on modeled comparison |
|---|---|
| Resale value falls by $3,000 | Buy net cost rises by $3,000 |
| Lease payment rises by $50 for 36 months | Lease total rises by $1,800 |
| Purchase incentive is unavailable | Amount financed and modeled buy cost increase |
Treat a lease payment advertised before taxes and fees as incomplete if those charges are due separately. Also check whether the incentive can legally be applied to the purchase you are considering; the calculator does not verify eligibility or current program availability.
When to use a different calculator
- Compare a conventional vehicle lease with buying → auto lease vs buy calculator
- Calculate a lease payment from contract inputs → lease payment calculator
- Compare lease and purchase cash flows for another vehicle → lease vs buy car calculator
- Estimate depreciation independently → auto depreciation calculator
Before signing, compare the same ownership period and include taxes, fees, insurance, maintenance, charging, mileage limits, and resale proceeds. A lower modeled total does not necessarily mean the option has the lower monthly cash requirement or best fits your driving needs.
Frequently Asked Questions
What does EV lease versus buy cost include?
The calculator compares modeled financing cost after the purchase incentive and estimated resale value with the lease down payment plus lease payments. It does not include insurance, registration, maintenance, taxes, fees, or the value of owning the vehicle after the loan term.
Why can the lease look cheaper when its term is shorter?
The lease and loan may cover different numbers of months, so their totals are not necessarily equal-period comparisons. Set terms that match your expected time with the vehicle, or compare the cost per month and account for what happens after each term.
Does the calculator determine whether I qualify for an EV incentive?
No, it applies the incentive amount you enter and does not check vehicle, buyer, income, dealer, or purchase-date eligibility. Check the IRS clean vehicle credit information for current federal rules before including a credit in your budget.
What should I check before signing an EV lease?
Check the total due at signing, taxes and fees, mileage allowance, excess-mileage charge, wear rules, and the cost of ending the lease early. The FTC’s guide to financing or leasing a car explains contract details to review.