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Lease vs. Loan Calculator

The Lease vs. Loan Calculator helps you understand the issues related to leasing or buying an automobile by comparing the costs associated with each option.*

  • Enter ballpark values by dragging the sliders left or right.
  • Enter exact numbers by clicking in the box and type your number (no commas). The results of your calculations show in the box near the bottom of the calculator.

Help

General Information
MSRP
This is the Manufacturer Suggested Retail Price, also known as the list price.
Purchase Price
This is the negotiated price of the automobile. This price is used in both the lease and the purchase options as the basic price you agreed to pay for the automobile.
Sales Tax
This is the sales tax rate in your area.
Savings Rate
This is the rate you would have earned if, instead of acquiring the vehicle, you had left the money in a savings account.
Loan Information
Down Payment
This is really a 2-part amount. The first part is generally an amount required by the lender. The second part is the amount you are willing to pay (if any) at the beginning of the loan in order to reduce your monthly payments. The more money you pay as down payment, the less your monthly payment will be.
Loan Rate
This is the interest rate charged by the lender for the money you borrow in the purchase option. The lower the rate, the less interest you have to pay per month and throughout the life of the loan.
Loan Term
The duration (in months) for which you borrow the money.
Lease Information
Cash Down
This is really a 2-part amount. The first part is generally an amount required by the lessor. The second part is the amount you are willing to pay (if any) at the beginning of the lease in order to reduce your monthly payments. The more money you pay as down payment, the less your monthly payment will be.
Fees
The non-refundable fees you pay at the inception of the lease.
Security deposit
The refundable security deposit you pay at the inception of the lease.
Lease Rate
The rate charged by the lessor for allowing you to use their money to lease the vehicle for them.
Lease Term
The duration of the lease. This is how long you can use the vehicle under the lease agreement. At the end of this term, your choices most often are: a) buy the vehicle for the residual value set at the time of the lease or b) turn in the vehicle.
Graph
The graph compares the annual cost of ownership between a lease and a loan. Mouse over the graph and move to a specific year to see the differences in the cost of ownership for that year.
Results
The results box recaps the comparison of the costs of a loan vs. the costs of a lease and shows you which one saves you money.

*Calculators provided are estimation tools and do not necessarily reflect products, terms or rates that Home Federal Bank may offer. Please contact your Home Federal banker to verify results.

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