Auto loan & lease
vs buy calculator.
Work out the real monthly cost of a car loan or a lease, see the total interest, and compare the two. Then the part the dealer never shows you: what that same monthly payment would become if you invested it instead. A car is a depreciating liability paid for in a depreciating currency.
Check the written offer
Get the itemized out-the-door price in writing before discussing a monthly payment. Separate the car price, taxes, mandatory fees, optional add-ons, down payment and any trade-in loan balance. Compare offers using the amount financed, APR, term, finance charge and total of payments, not payment size alone. Longer terms can lower the payment while increasing total borrowing cost.
Use the CFPB auto-loan comparison to check disclosures against the buyer’s order and contract. Ask which add-ons are optional and whether their cost is financed. A calculator cannot verify the seller’s charges or the condition of the car.[17]
7% is a rough long-run stock-market assumption. Set your own; Bitcoin's history is far higher and far more volatile.
Estimates only. Real quotes include fees, registration, and dealer add-ons. Your numbers stay in your browser.
Leasing is renting: lower payment, but you own nothing at the end and start over. Buying with a loan costs more per month but leaves you an asset, one that is still depreciating. The most expensive option is usually the longest loan on the most car; the cheapest is a used vehicle owned outright, with the payment you skipped going to work.
What this tool assumes
- The loan amount is price plus sales tax, minus down payment and trade-in. Fees, registration, and add-ons are not modeled.
- The lease payment uses the standard depreciation-plus-rent-charge formula, with money factor = APR / 2400. Real leases add acquisition and disposition fees and mileage limits.
- The "if invested instead" line grows the full monthly buy payment as an ordinary annuity at your chosen return. It is illustrative, not a promise; markets fall as well as rise, and Bitcoin far more so.
- Depreciation of the car itself is not charted, which understates the true cost gap versus investing.
Methodology and questions
How is the lease payment calculated?
Monthly lease = depreciation + rent charge. Depreciation is (capitalized cost − residual value) / term. The rent charge is (capitalized cost + residual) × money factor, where money factor ≈ APR / 2400. Residual is the car's assumed value at lease end.
Is it better to lease or buy?
If you keep cars a long time, buying and driving them past the loan is almost always cheaper per mile. Leasing suits people who want a new car every few years and will never stop making a payment. Neither builds wealth; a car is a cost, not an investment.
What does the "invested instead" line show?
The future value of putting your monthly car payment into an investment instead. It is the honest opportunity cost of the purchase. Dig into it with the opportunity cost calculator.
Not financial advice. Estimates only. Your numbers stay in your browser.