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Car Lease vs. Buy Auto Payment Calculator

This car payment calculator estimates whether it is better to lease a car or to buy a car, taking into account the total net cost and your monthly car payments.

Both leasing and buying can turn out to be the better choice (in terms of money saving) so use the calculator to decide which is better in your particular situation.

This Car Payment Calculator requires the SUN's Java™ Plug-in installed.

If you see this message, then you need to download the SUN's Java™ Plug-in. Do that automatically by clicking on the yellow bar at the top of your browser and installing ActiveX Control. You can also get SUN's Java™ Plug-in by visiting this link: get SUN's Java™ Plug-in!

Car Payment Terms Reference:

Term in months: The number of months for which you take your car loan or lease a car.
Down payment: The amount of cash you put down for your car purchase or car lease. If you lease a car the down payment may be called a capital reduction.
Other fees: This includes any fees that may be required at the close of the car loan or lease, including license, title transfer fees, etc.
Purchase price: The total car purchase price after eventual manufacturer's rebate.
Interest rate: The annual interest rate which is charged and paid for your car financing or leasing.
Sales tax rate: The percentage rate of the sales tax levied on your car purchase. When you lease this is included in each payment. When you buy, this is charged on the total amount.
Annual depreciation: This is a gauge of the rate at which your new car will depreciate every year, expressed in percentages.
Residual percent: This gauges the remaining value of the car after the lease term is over, expressed in percentages.
Market value of vehicle: This represents the car’s market value after the term of the lease is over.
Investment rate of return: In case you invest your money instead of paying your car down payment and security deposit, you could earn return on your investments. Here you can fill in the potential rate of return depending on the type of your investments.
Lost interest on buy option: The lost interest on the buy option presents the lost/missed return you would have profited if you had invested the money for the down payment and fees. The lost/missed interest due to the higher monthly payments in case the leasing car payments are smaller is also included here.
Lost interest on lease option: The lost interest on the lease option presents the lost/missed return you would have profited if you had invested the money for the car down payment, security deposit and fees.

The information and interactive car payment calculators that are provided on this site are made available as general assistant guidance in regards to car loans and payments. We do not guarantee that any information or calculations will be accurate or applicable to your personal financial situation, circumstances, or objectives. Accordingly, before making any final decisions we encourage you to consult a qualified professional and get personalized advice.

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