Car Loan vs Lease Calculator
Compare the total costs of financing vs leasing a vehicle to make the best financial decision
About this calculator
The Car Loan vs Lease Calculator helps you compare the total financial costs of purchasing a vehicle with financing versus leasing it over the same time period. This tool analyzes monthly payments, down payments, interest rates, residual values, and other fees to show which option saves you more money. By providing a clear side-by-side comparison, you can make an informed decision that aligns with your budget, driving habits, and long-term financial goals.
How to use
Enter the vehicle's price, your down payment amount, loan terms, and interest rate for the financing option. Then input lease details including monthly payment, down payment, lease term, and any fees. The calculator will compare total costs for both options and show which choice offers better value for your specific situation.
Frequently asked questions
Is it cheaper to lease or finance a car?
It depends on factors like loan terms, interest rates, how long you keep the car, and mileage. Leasing typically has lower monthly payments but no ownership equity.
What costs should I include in the comparison?
Include down payments, monthly payments, interest charges, lease fees, insurance differences, maintenance costs, and the car's residual value when comparing total costs.
How does mileage affect the lease vs buy decision?
High-mileage drivers often benefit more from buying since leases have mileage restrictions with expensive overage fees, typically 10,000-15,000 miles annually.