Auto Used Cars for Sale: Leasing and Buying Loan Calculator

Buy or Lease?

Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.

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User's Guide Manual

To use this calculator effectively:

1. Read the definitions at the end of this page.

2. Enter all of the variables: rate (%) and dollar ($) amount. Select the time frame.

3. Select varieties of options and possibilities.

4. To see the results Click "Calculate" button.

5. To read and print more detailed explanations of the results, click "View Report" button.

Definitions

Term in months Term in months for your auto lease or your auto loan.

Down payment Amount paid as a down payment, which for leases is often called a capital reduction.

Other fees Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, etc.

Purchase price Total purchase price. Price should be after any manufacturer's rebate.

Interest rate Annual interest rate for your loan or your lease.

Sales tax rate Percentage sales tax to be charged on this purchase. Sales tax is included in each lease payment. Sales tax for buying is charged on the total sale amount.

Rate of depreciation The rate of depreciation gauges how fast your new automobile will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.

Residual percent For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.

Market value of vehicle Value of your auto after the lease term is over.

Investment rate of return Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your auto purchase or lease.

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* Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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Term in months	Term in months for your auto lease or your auto loan.
Down payment	Amount paid as a down payment, which for leases is often called a capital reduction.
Other fees	Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, etc.
Purchase price	Total purchase price. Price should be after any manufacturer's rebate.
Interest rate	Annual interest rate for your loan or your lease.
Sales tax rate	Percentage sales tax to be charged on this purchase. Sales tax is included in each lease payment. Sales tax for buying is charged on the total sale amount.
Rate of depreciation	The rate of depreciation gauges how fast your new automobile will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.
Residual percent	For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.
Market value of vehicle	Value of your auto after the lease term is over.
Investment rate of return	Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your auto purchase or lease.