Example 1
- 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 calculator
Type price, down payment, loan interest, years, and lease markup. At 100,000 with 20,000 down, 8% and 4 years, the loan is about 1,953 and the lease 1,859. The lease total skips the 15% buyout. This is not a financing offer.
The lease formula uses a fixed 15% residual. Lease total is installments only. The loan is an annuity on (price − down payment). A payment without the 15% lives on leasing installment.
Result
Vehicle price, Down payment, Loan interest (%) and Term (years). The result shows up here.
How results are calculated
Loan: a monthly annuity on (price − down payment). At 100,000 with 20,000 down the base is 80,000; 8% over 48 months is about 1,953.03, total about 93,745.62. Lease: (price − 15% of price) × (1 + markup/100) / months. 85,000 × 1.05 / 48 = 1,859.38, installment total 89,250 with no buyout.
At 60,000, 10,000 down, 10% and 3 years the loan is about 1,613.36 and the lease at 4% markup about 1,473.33. At 80,000 with no down payment, 12% and 5 years the loan is about 1,779.56 and the lease at 6% about 1,201.33. The gap grows because the lease total still excludes the 15% buyout.
Fields are vehicle price, down payment, loan interest, term in years, and lease markup. The 15% residual has no field: it is baked in. Header currency formats the payments. A comma in 8 and 5 parses.
A payment without the hard-coded 15% lives on leasing installment. A balloon at your own rate lives on residual value. TCO will fold finance with fuel if you carry the numbers over. The model does not pick a winner, because it skips buyout and who owns the car at the end.
Blank price does not fill 100,000 from the example. A down payment larger than price leaves the loan with no base. Zero down is allowed, as in the third example. A minus is rejected. This is a sketch of two formulas, not a bank decision.
Type 100,000, 20,000, 8, 4 and 5, click Calculate, and match about 1,953 versus 1,859. When you read “lease cheaper on installment totals,” add the 15,000 buyout in your head. The calculator does not put it in the lease total.
How to use
- Type vehicle price, for example 100,000, and down payment, for example 20,000.
- Type loan interest, for example 8, term in years, for example 4, and lease markup, for example 5.
- Click Calculate. A loan on 80,000 at 8% for 48 months is about 1,953. The lease is 1,859.38.
- Compare totals: loan about 93,746, lease 89,250. The 15% buyout sits outside the lease total.
- Change the hard-coded 15% only in your head or on residual value. There is no residual field here.
Lease with a fixed 15% residual versus a loan
The loan is an annuity on (price − down). The lease uses a fixed 15% residual. At 100000, 20000 down, 8%, and 4 years the loan is about 1953 and the lease 1859.
- residual
- A fixed 15% in this lease model. Lease installments total 89250 and skip the 15% buyout. The loan total about 93746 is the full annuity.
- Lease
- A payment after residual and markup. 1859.38 at 100000 / 20000 / 4 years / 5% markup. Not a money-factor quote.
- Loan
- An annuity on 80000 (price minus down) at 8% for 4 years, about 1953.03 a month, total about 93746.
Usage examples
Example 2
- 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
- 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).
Related calculators
FAQ
What payments at 100,000, 20,000 down, 8%, 4 years and 5% markup?
Loan about 1,953.03, lease 1,859.38. Loan total about 93,745.62, lease total 89,250 with no buyout.
Why a fixed 15% on the lease?
A model shortcut. A real contract uses a different balloon. There is no field for your own residual percent.
Does the lease total include buyout?
No. Total = installment × months. At 100,000 you add the 15,000 buyout yourself.
How is the loan payment calculated?
A standard annuity on (price − down payment). 80,000 at 8% a year for 48 months ≈ 1,953.03.
How is the lease payment calculated?
(price − 0.15 × price) × (1 + markup/100) / (years × 12). 85,000 × 1.05 / 48 = 1,859.38.
Which option comes out cheaper?
The model does not decide. The lease total skips buyout and who owns the car at the end. Compare the full picture, not the payment alone.
Is this a bank offer?
No. Two educational formulas. The schedule and APR sit with the lender.
What if price is blank?
The calculator does not compute and does not fill 100,000 from the example. Five fields need numbers; down payment may be zero.
What about 60,000, 10,000 down, 10%, 3 years and 4% markup?
Loan about 1,613.36, lease about 1,473.33. At 80,000, down 0, 12%, 5 years and 6% that is about 1,779.56 versus 1,201.33.
Where is a payment without the 15%?
On leasing installment: value × (1 + markup/100) / months, with no residual subtraction.
Knowledge sources
Use, cost or emissions come from your numbers. Below are FuelEconomy.gov, EPA and SI terms.
Page updated in 2026.