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Lease vs loan, on total cost
A lease usually wins on the monthly payment and often loses on the total. This puts both offers on the same basis: everything you pay, across the whole term, including the buyout and the fees each side quotes separately.
Compare two offers
Enter what each lender actually quoted you.
- Loan monthly payment
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- Loan total paid
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- Lease total paid
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- Difference
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What this assumes
- Equal monthly payments across the term for the loan.
- Tax treatment is excluded. It differs between structures and is a question for your accountant.
- Residual value of the equipment at the end is excluded, because it is not cash you pay.
- Results are an estimate for comparison only, not an offer or a quote.
We are not a lender and not a broker. This tool does arithmetic on the numbers you enter. Only a lender can tell you what you actually qualify for. How lease structures work
Why monthly payment is the wrong comparison
The default figures above are a real trap. The lease costs less every month than the loan, and costs more overall once the buyout and the deposit land. An operator comparing the two quotes on the monthly line would pick the more expensive option and feel good about it.
If the two terms are different lengths, both totals are correct and they are not measuring the same thing. The tool says so rather than declaring a winner.