Car Financing Payment Calculator (Buy Side of Lease vs Buy)

Use this calculator to price the buying side of a lease-versus-buy decision. Enter the amount you would finance after any down payment and trade-in, the APR you have been quoted (or a rate from a pre-approval at a bank or credit union), and the term in years. The tool applies the standard amortization formula for a fixed-rate loan: payment = P x r / (1 - (1 + r)^-n), where P is the amount financed, r is the monthly rate (APR divided by 12) and n is the number of monthly payments.

Worked example (illustrative numbers only). Financing $38,000 at 7.0% APR over 5 years gives a payment of roughly $752 a month and about $7,100 in total interest. A 36-month lease on the same car might show a much lower monthly figure, but at the end you would own nothing, whereas the loan leaves you with a vehicle that still has value. To compare fairly, add everything you pay on each side over the same period, then subtract what the car would be worth if you bought it.

Limits. The calculator does not include sales tax, insurance, maintenance, taxes on the lease payment, or the car's resale value, and it assumes a fixed rate and no extra payments. The $500 fee default is just a placeholder for doc and registration costs. Treat the output as a planning figure and rely on the written quote from the lender for your actual contract.