EV Lease vs Buy Calculator

Deciding whether to lease or buy an electric vehicle involves more than just comparing monthly payments — tax credits, depreciation, and long-term ownership value all play a role. Enter your vehicle purchase price, federal EV tax credit, state/local rebates, and loan or lease terms into the EV Lease vs Buy Calculator to see your Total Cost to Buy vs Total Cost to Lease. You'll also get your monthly buy payment, estimated vehicle value at end of term, and the overall lease vs buy savings so you can see which option costs less over time.

Up to $7,500 for new EVs

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EVs typically depreciate 15-20% annually

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Results

Lease vs Buy Savings

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Total Cost to Buy

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Total Cost to Lease

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Monthly Buy Payment

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Vehicle Value at End

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Frequently Asked Questions

Is it better to buy or lease an electric vehicle?

The answer depends on your driving habits, budget, and preferences. Leasing typically offers lower monthly payments and access to newer technology, while buying provides ownership and potential long-term savings if you keep the vehicle for many years.

What EV tax incentives should I consider?

Federal tax credits up to $7,500 are available for new EVs, plus many states and localities offer additional rebates. These incentives can significantly reduce the effective cost of buying an EV, making purchase more attractive than leasing.

How does EV depreciation affect the lease vs buy decision?

EVs typically depreciate faster than gas cars due to rapidly improving technology and battery concerns. This higher depreciation can make leasing more attractive, as you avoid the risk of steep value loss.

Can I get federal tax credits when leasing an EV?

When leasing, the leasing company typically claims the federal tax credit and may pass some savings to you through lower lease payments. When buying, you can claim the full credit directly on your tax return.

What additional costs should I consider for EV ownership?

Consider home charging station installation costs (typically $500-2000), potential electricity rate increases, and warranty coverage for batteries. However, EVs generally have lower maintenance costs than gas vehicles.

How does mileage affect the lease vs buy decision for EVs?

If you drive more than 12,000-15,000 miles annually, buying is usually better since lease agreements charge excess mileage fees. High-mileage drivers also benefit more from EV fuel savings over time.

Should I consider battery replacement costs when buying an EV?

Modern EV batteries typically last 8-10 years or 100,000+ miles and are covered by warranties. Battery replacement costs are decreasing, but it's still a consideration for long-term ownership beyond the warranty period.