Loan vs Lease Calculator
Our free Loan vs Lease Calculator helps you compare the true cost of buying versus leasing a vehicle. Whether you're deciding on a new car, truck, or SUV, this tool breaks down the financial differences to help you make the smartest choice for your situation.
Use this calculator when evaluating vehicle options, comparing dealer offers, or deciding if the flexibility of leasing outweighs the benefits of ownership. Enter your loan and lease terms to see side-by-side comparisons of monthly payments, total costs, and the bottom-line difference.
Compare Loan vs Lease
Comparison Results
Monthly Payment
$0
Loan
$0
Lease
Total Cost (0 mo)
$0
Loan
$0
Lease
You Own After
$0
Asset
$0
Nothing
Leasing saves you $0 over 0 months
But remember: with leasing you won't own the vehicle at the end
How This Loan vs Lease Calculator Works
This calculator compares the total out-of-pocket costs for buying versus leasing:
Loan Cost = Down Payment + (Monthly Payment × Months)
Lease Cost = Down Payment + (Monthly Payment × Months)
Key differences the calculator considers:
- Loan: Higher payments, but you build equity and own the vehicle
- Lease: Lower payments, but you return the car with nothing at the end
- Comparison period: We compare costs over the lease term for fair analysis
The calculator shows immediate cash outflow, but remember: buying builds equity while leasing is purely an expense. A car loan payment eventually ends; lease payments continue as long as you want a car.
Example Calculation
Let's compare a $35,000 vehicle:
Buy (60-month loan at 6.5%)
- Down payment: $5,000
- Monthly payment: $587
- Total paid (36 mo): $26,132
- You own: $35,000 car
Lease (36 months)
- Down payment: $2,000
- Monthly payment: $350
- Total paid (36 mo): $14,600
- You own: Nothing
Analysis:
- Lease costs $11,532 less over 36 months
- BUT after 36 months of loan payments, you still have a car worth ~$20,000
- After 60 months, you own the car free and clear—no more payments
- If you lease continuously, you'll always have a car payment
Why Use This Calculator
Key Benefits:
- Compare apples-to-apples costs between buying and leasing
- See the true monthly and total cost differences
- Understand the trade-off between payments and ownership
- Make informed decisions at the dealership
- Avoid overpaying for either option
Common Mistakes This Calculator Helps You Avoid:
- Only comparing monthly payments (ignoring total cost)
- Forgetting that leasing means perpetual payments
- Not considering the value of ownership
- Ignoring down payment differences
- Making emotional decisions without data