# UAE Car Lease vs Buy Calculator

Compare total cost of leasing vs buying a car in the UAE, including insurance, depreciation, maintenance, and financing. Shows net cost, monthly burn, and which option saves more over your ownership horizon.

**Interactive calculator:** https://www.yallacalculators.online/car-lease-vs-buy
**Last verified:** April 23, 2026
**Creator:** Varun Punjabi — https://www.linkedin.com/in/vp4/

## What this calculates

Buy scenario: monthly loan payment uses the standard amortization formula on (car price − down payment) at the input interest rate. Registration fee is flat AED 620/year per the RTA schedule (not a percentage of car price). Insurance at 3% of car value/year if enabled. Maintenance at AED 4,000/year if enabled. Depreciation at 17% per year (compound) gives the resale value, which is subtracted from total cost for net cost. Lease scenario: initial payment + (monthly × term × 12) + AED 1/km excess mileage fee if annual mileage exceeds 15,000 km/year. Verdict compares net buy cost to total lease cost.

## Inputs

- **Car price (AED)** — Purchase price of the vehicle
- **Down payment %** — Percentage of car price paid upfront
- **Loan term (years)** — Auto loan duration (typical 2-5 years)
- **Interest rate (%)** — Annual interest rate on the auto loan
- **Ownership years** — How long you plan to keep the car
- **Lease monthly payment (AED)** — Monthly lease payment
- **Lease initial payment (AED)** — Upfront lease deposit/initial payment
- **Lease term (years)** — Lease duration
- **Annual mileage (km)** — Expected yearly driving distance; excess over 15,000 km incurs fees
- **Include insurance** — Whether to include comprehensive insurance in both scenarios
- **Include maintenance** — Whether to include service/repair costs

## Outputs

- **Total buy cost** — Car price + loan interest + registration + insurance + maintenance
- **Resale value** — Estimated car value at end of ownership (17% annual depreciation)
- **Net buy cost** — Total buy cost minus resale value
- **Monthly buy cost** — Net buy cost amortized over the ownership period
- **Total lease cost** — Initial payment + monthly × term × 12 + excess mileage fees
- **Monthly lease cost** — Total lease cost divided by lease months
- **Savings amount** — Cost difference between the two options
- **Verdict** — Whether buying or leasing is more cost-effective

## Data sources

- [Roads and Transport Authority (RTA)](https://www.rta.ae) — verified February 2026
- [UAE Central Bank auto loan regulations](https://www.centralbank.ae) — verified February 2026

## Citation

When citing this calculator, please include:

> YallaCalculators — UAE Car Lease vs Buy Calculator. Verified against official UAE government sources (February 2026). https://www.yallacalculators.online/car-lease-vs-buy

---

*YallaCalculators.online — UAE financial calculators for residents and expats.*
*Index: https://www.yallacalculators.online/ai/*