Lease vs Buy Calculator

Lease vs. buy comparisons are tricky because the two options cover different time periods and leave you in different financial positions. This calculator normalizes both over your lease term. Lease cost equals due-at-signing plus monthly payments plus any excess km fees, minus rebates. Buy cost equals down payment plus loan payments over the same period, minus estimated resale value and rebates. Enter your actual quote and loan terms for the most accurate result.

How the numbers are worked out

On the lease side, excess km fees come from comparing your actual annual driving distance to the lease’s allowed km, prorated for the lease term, then multiplying any overage by your per-km rate. On the buy side, the monthly loan payment uses a standard amortization formula based on the vehicle’s net price after down payment and rebates, your APR, and your loan term in months. Because loan terms often run longer than lease terms, only the buy payments that fall within the comparison period are counted, alongside the vehicle’s estimated resale value at that point, so both options are measured over the same stretch of time. The federal EVAP rebate and any provincial rebate you enter are deducted from whichever path you’re comparing, since Canada’s federal rebate, unlike some incentive programs, applies to both purchases and leases of 12 months or more.

What the calculator does not account for

GST/HST, PST, insurance, and registration fees apply fairly similarly to both options, so they’re left out to avoid distorting the comparison. Actual resale value depends heavily on the specific make, model, trim, mileage, and condition, and can shift with market conditions between now and the end of your term. Treat it as a planning estimate, not a guarantee. Provincial rebate eligibility for leases versus purchases also varies by program. Check our Rebates and Incentives page for what applies where you live.

Vehicle & Driving
Sticker price before incentives and taxes
Average Canadian driver: 15,000–20,000 km/year
Check the Rebates page for your province
🔵 Lease
First month, fees, cap cost reduction
Typical range: 15–30¢/km
🟢 Buy
What the bought vehicle is worth at the end of the comparable lease term, subtracted from buy costs so both options are evaluated over the same timeframe

🔵 Lease
Due at signing
Monthly payments
Monthly × term
Excess km fees
Rebates applied
Total cost
You own at end Nothing
🟢 Buy
Down payment
Loan payments (over lease term)
Monthly payment
Rebates applied
Minus: resale value
Net cost (same period)
You own at end
Total cost comparison over lease term
Lease
Buy
🔵 Leasing is better if you…
  • Drive within the km allowance
  • Want a new EV every 2–3 years as battery tech improves
  • Don't want to worry about long-term battery degradation
  • Prefer a lower payment today over building equity
🟢 Buying is better if you…
  • Drive more km than a typical lease allows
  • Plan to keep the vehicle long-term
  • Want to build equity and own an asset outright
  • May want to modify the vehicle or drive it commercially
💡 Canadian leasing tip: the federal EVAP rebate is applied by the dealer at point of sale on both purchases and leases of 12 months or more, so you don't lose it by leasing. Provincial rebates vary — some provinces apply the same amount to a lease, others only to a purchase, so confirm on the Rebates page before you sign. Because EVs depreciate quickly and battery tech keeps improving, leasing can be a reasonable way to stay current — but if you drive high km or plan to keep the car 5+ years, buying usually wins on total cost.
Important: This calculator produces estimates for comparison purposes only and is not financial advice. Results are based entirely on the numbers you enter and should not be used as the basis for a purchasing decision without verifying actual lease offers and loan quotes from lenders and dealers.

Incentives: The rebate fields apply a simple dollar reduction to illustrate potential impact. Actual eligibility for federal and provincial EV incentives is complex and changes frequently — vehicle price caps, income limits, and lease-vs-purchase rules vary by program. Our Rebates and Incentives page is a reference tool, not a determination of your eligibility. Always confirm current terms with the program source (Transport Canada or your provincial rebate administrator) before making a financial decision.

Does not include GST/HST, PST, insurance, or registration fees, as these apply to both options and should be evaluated separately. EV depreciation varies significantly by make, model, trim, mileage, and market conditions.

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