Example 1 — 100k / 20k / 8% / 4y / 5%
- Price: 100,000
- Down: 20,000
- Loan: 8%
- Years: 4
- Markup: 5%
Loan ≈ 1,953.03/mo
Lease = 1,859.38/mo
Loan tot ≈ 93,745.62
Lease tot = 89,250
Lease cheaper on instalments — buyout excluded.
Leasing vs loan — model comparison
Compare a loan annuity with a simplified lease payment and see which looks cheaper on instalment totals in this model.
Lease formula uses a fixed 15% residual. Lease total = instalments only — residual buyout excluded. Loan: annuity on (price − down payment). Not a financing offer.
Result
Enter data and click Calculate.
How results are calculated
Loan: monthly annuity on (price − down payment).
Lease: (price − 0.15×price) × (1 + markup/100) / (years×12). Residual 15% is fixed.
Totals = monthly × months. Lease total excludes buyout.
How to use the calculator
- Enter price and down payment.
- Set loan rate and years.
- Set lease markup.
- Read the 15% residual / no-buyout notice.
Usage examples
Example 2 — 60k / 10k / 10% / 3y / 4%
- Price: 60,000
- Down: 10,000
- Loan: 10%
- Years: 3
- Markup: 4%
Loan ≈ 1,613.36/mo
Lease ≈ 1,473.33/mo
Shorter term, higher loan rate.
Example 3 — 80k / 0 / 12% / 5y / 6%
- Price: 80,000
- Down: 0
- Loan: 12%
- Years: 5
- Markup: 6%
Loan ≈ 1,779.56/mo
Lease ≈ 1,201.33/mo
No down payment — large total gap (lease without buyout).
FAQ
What is compared?
Loan instalment and total (annuity on price − down payment) vs a simplified lease with a hard-coded 15% residual.
Why a fixed 15% residual on the lease side?
Model simplification — stated honestly in the notice. Real contracts use a different residual.
Does the lease total include buyout?
No. Lease total = monthly × months. Residual buyout is excluded.
How is the loan payment calculated?
Standard monthly annuity on (price − down payment) at the stated annual rate.
How is the lease payment calculated?
(price − 15% × price) × (1 + markup/100) / (years × 12).
Which option is “better”?
Only within this instalment-total model. Ownership, tax, insurance and buyout change the picture.
Is this a bank/lessor offer?
No — educational comparison of assumptions, not a financial product.
What next after the result?
Check residual value, the lease instalment tool, and car TCO.