Loan vs Lease Calculator
Which is cheaper for the car you want?
Loan monthly payment:
Cost to own after 3 yrs (net):
Cost to lease after 3 yrs:
Cheaper option:
How to use this calculator
Enter the car price, loan down payment, APR, term, lease term and lease payment, plus residual value, then press Compare. Buying and leasing costs appear with a verdict.
Worked example
A $35,000 car financed at 5.9% over 60 months costs about $675 a month and leaves you owning a vehicle worth maybe $18,000 at the end. The same car leased for $429 a month for 36 months costs less each month but returns the car with nothing to show. The tool compares total cost over the terms you enter to reveal which is cheaper overall.
What the result means
The tool weighs the full cost of each path over your chosen period. Leasing wins on monthly cash flow and on always driving a new car; buying wins once you keep the car past the loan and the ownership years are free of payments.
Which fits your driving?
- Lease: low monthly cost, warranty coverage, but mileage caps (often 10-12k a year) and fees for wear.
- Buy: higher payment, but an asset at the end that you can keep for years at near-zero incremental cost.
- High-mileage drivers usually lose on leases through overage charges.
Frequently asked questions
Is leasing ever smarter than buying?
Yes - if you always want a new car with low payments and drive few miles. But it is a consumption choice, not an investment: at lease end you own nothing.