Vehicle Loan & Lease Calculator
Compare two scenarios side by side — different terms, rates, or loan vs. lease — to understand exactly what you're paying and why.
Loan
You own the vehicle. Payments go toward principal + interest. At the end, it's yours — no restrictions.
Lease
You're renting long-term. Lower payments, but you don't own it. A money factor hides the interest cost.
Key Terms Explained
-
The actual amount you're borrowing — the vehicle price after your down payment and trade-in are subtracted.
-
The yearly interest rate on your loan. A lower APR means less total interest paid. Even a 1–2% difference makes a meaningful impact over a 60–84 month term.
-
How many months you'll be making payments. Longer terms mean lower monthly payments but significantly more total interest paid. A 84-month loan on the same vehicle will cost you considerably more in interest than a 60-month loan.
-
The amount you pay upfront. A larger down payment reduces your principal, which lowers both your payment and your total interest. If you have a trade-in, that value works the same way.
-
The estimated value of the vehicle at the end of the lease term, set by the lender. This is not negotiable in most cases. A higher residual means lower monthly payments; a lower residual means more of the vehicle's depreciation is built into your payments.
-
This is the interest rate on a lease, expressed in a format dealers use. To convert it to an approximate APR, multiply by 2,400. For example, a money factor of 0.00175 equals roughly 4.2% APR. Dealers are not always upfront about this — it's worth asking for it directly.
-
Some lenders offer true bi-weekly payment schedules, which can modestly reduce total interest paid over the life of a loan because you end up making the equivalent of one extra monthly payment per year (26 bi-weekly payments = 13 months). The figures shown in the calculator are a budget conversion, not a restructured amortization — if your lender offers a true bi-weekly option, ask them for the exact figures.
How to use this tool
Use this calculator to understand what you're really paying before you sign anything. Enter your numbers, compare your options, and walk into the dealership informed.
1. Choose your type Each scenario has a toggle — select Loan or Lease depending on what you're exploring. You can set Scenario A to a loan and Scenario B to a lease to compare them directly, or use both to compare two different loan terms.
2. Enter your numbers Fill in the fields for vehicle price, down payment, interest rate, and term. The calculator updates instantly as you type. If you don't have exact figures yet, the defaults are reasonable starting points.
3. Read the results The large number is your estimated monthly payment. Below it you'll see bi-weekly and weekly equivalents — useful if you're paid on those cycles. Scroll down in the result card for a full breakdown of what you're actually paying over the life of the loan or lease.
4. Use the amortization chart (loans) The bar chart shows how your payment splits between principal and interest each month. Early on, most of your payment goes to interest — this shifts over time. The full schedule table shows every single payment if you want to dig in.
Loan vs. Lease — What's the Difference?
Loan You borrow money to buy the vehicle outright. Your payments cover the full purchase price plus interest. At the end of the term, you own it free and clear. There are no mileage limits, no wear-and-tear conditions, and you can sell or modify it as you like.
Lease You're essentially renting the vehicle for a set period. Your payments only cover the depreciation (the portion of value the car loses during your term) plus a finance charge. Because you're not paying off the full value, monthly payments are typically lower — but you hand the vehicle back at the end unless you pay the residual to buy it out. Leases usually come with annual kilometre limits (commonly 20,000–24,000 km/yr in Canada), and excess mileage or wear charges can add up.
The bottom line: Loans cost more per month but build equity. Leases cost less per month but you're left with nothing at the end — unless you buy out.
Tips Before You Sign
Get pre-approved through your bank or credit union first. Dealer financing is convenient, but your own bank may offer a better rate. Having a pre-approval also gives you negotiating leverage.
Negotiate the vehicle price separately from the financing. Dealers may bundle these together in ways that make it hard to compare. Agree on the price first, then discuss financing.
Watch the total cost, not just the monthly payment. A longer term can make an expensive vehicle look affordable month-to-month while costing you thousands more overall.
Ask for the money factor in writing on a lease. You're entitled to know it.
Factor in insurance, fuel, and maintenance. These aren't in the calculator but are real costs. Newer or leased vehicles often carry higher insurance premiums.
Kilometre limits on leases are serious. If you drive more than average, calculate your expected annual kilometres before committing to a lease.
Please Note
The estimates and information on this page are for informational purposes only and are not financial advice. Always verify final figures with your lender or dealer. Tax treatment may vary. Ask a professional for financial advice.