Lease vs Buy Calculator
Compare the total cost of leasing versus buying a vehicle in Canada to see which option saves you more.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
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Lease Details
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$
Buy Details
$
Leasing Saves You
$4,868.47
Over 48 months (4 years)
Total Lease Cost
$23,600.00
$450.00/mo + $2,000.00 down
Total Buy Cost
$51,958.76
$782.65/mo + $5,000.00 down
Buy Monthly Payment
$782.65
60 months at 6.5%
Vehicle Value After Lease
$23,490.28
15% annual depreciation
Cost Comparison (48 months)
Lease
Monthly Payments (48 mo)$21,600.00
Down Payment$2,000.00
Net Lease Cost$23,600.00
Buy
Total Payments + Down$51,958.76
Interest Paid$6,958.76
Vehicle Value at 48 mo-$23,490.28
Net Buy Cost$28,468.47
DifferenceLeasing saves $4,868.47
Frequently Asked Questions
Is leasing or buying a car better in Canada?
It depends on your situation. Leasing offers lower monthly payments and a new car every few years. Buying builds equity and is usually cheaper long-term. Self-employed individuals may deduct lease payments as a business expense.
What is the residual value?
The residual value is the estimated worth of the vehicle at the end of the lease. A higher residual means lower lease payments. You can buy the vehicle at the end of the lease for this amount.
Can I deduct vehicle expenses for business?
Yes. CRA allows deducting lease payments (up to $950/month for 2026) or CCA (depreciation) on purchased vehicles (up to $37,000 for Class 10.1) plus interest (up to $300/month).
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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