EV Lease vs Buy Calculator
Compare monthly payments, total cost, and break-even timelines for any electric vehicle. Federal vehicle purchase credits are not applied to current transactions because they ended for vehicles acquired after September 30, 2025.
Lease vs Buy: Common Questions
Should I lease or buy an electric vehicle?
It depends on your situation. Leasing typically offers lower monthly payments and allows you to upgrade to a newer EV every 2–3 years as technology improves. Buying builds equity and can be cheaper long-term if you keep the vehicle 5+ years. Our calculator shows exactly when buying becomes cheaper (break-even month).
Does a federal tax credit reduce a new EV lease or purchase in 2026?
No. The federal new, used, and commercial clean vehicle credits ended for vehicles acquired after September 30, 2025. A current manufacturer or dealer lease offer can still provide a discount, but it is separate from those credits.
What is a money factor in a lease?
The money factor is the lease equivalent of an interest rate. Multiply it by 2,400 to get the approximate APR. For example, a money factor of 0.00125 = 3% APR. Lower is better. Money factors are set by the manufacturer's captive finance arm and change monthly.
What is residual value in a lease?
The residual value is what the leasing company projects the car will be worth at the end of your lease term, expressed as a percentage of MSRP. A higher residual means lower monthly payments because you're financing less depreciation. EVs typically have residuals between 45–60% for 36-month leases.
Can I negotiate a lease price?
Yes — the capitalized cost (equivalent of the selling price) is negotiable. You cannot typically negotiate the money factor or residual value set by the manufacturer's finance arm, but dealers may offer additional discounts. Always negotiate the selling price, not just the monthly payment.