Automotive / Vehicle Ownership
Lease vs Buy Payment Calculator
Loan (Buy) Terms
Lease Terms
Typical: 45-60%
Typical: 0.0015-0.0035
Calculation Formulas
Loan Payment: M = P[r(1+r)^n]/[(1+r)^n-1]
Where M = monthly payment, P = principal, r = monthly rate, n = number of payments
Lease Payment:
- Depreciation = (Cap Cost - Residual) / Lease Months
- Finance Charge = (Cap Cost + Residual) × Money Factor
- Monthly Lease = (Depreciation + Finance Charge) × (1 + Tax Rate)
Money Factor to APR: APR ≈ Money Factor × 2400
Use this lease vs buy payment calculator to compute vehicle ownership results from your inputs.