Auto Payment Comparison Calculator
Compare different auto loan scenarios to find the best option for your budget
An Auto Payment Comparison Calculator helps you evaluate different financing options—such as loans, leases, and cash purchases—to determine the most cost-effective way to buy a car.
1. What It Compares
This calculator evaluates:
✅ Auto Loans (Bank vs. dealer financing)
✅ Lease vs. Buy (Monthly payments & long-term costs)
✅ Different Loan Terms (36 vs. 60 vs. 72 months)
✅ Down Payment Impact (How much upfront affects payments)
✅ Interest Rates (How APR changes total cost)
2. Key Inputs Needed
A. For Loans
Loan Amount (Price - Down Payment)
Interest Rate (APR) (Varies by credit score)
Loan Term (36, 48, 60, or 72 months)
Down Payment (10-20% recommended)
B. For Leases
MSRP & Negotiated Price
Money Factor (Lease interest rate)
Residual Value (Car’s end-of-lease worth)
Mileage Limit (10K, 12K, or 15K miles/year)
C. For Cash Purchase
Total Price (Including taxes & fees)
Opportunity Cost (What if you invested instead?)
3. How It Works (Example Comparison)
Scenario:
Car Price: $35,000
Down Payment: $5,000
Loan APR Options:
Bank Loan: 5% APR (48 months)
Dealer Financing: 3.9% APR (60 months)
Lease Option:
Money Factor: 0.002 (4.8% APR equivalent)
Residual Value: 55%
Term: 36 months
Calculations:
Option 1: Bank Loan (48 Months @ 5%)
Loan Amount: $30,000
Monthly Payment: $690
Total Interest Paid: $3,120
Total Cost: $35,120
Option 2: Dealer Loan (60 Months @ 3.9%)
Monthly Payment: $551
Total Interest Paid: $3,060
Total Cost: $38,060
Option 3: Lease (36 Months)
Monthly Payment: $450
Total Lease Cost: $16,200 + Fees
No Ownership at End
Option 4: Cash Purchase
Total Cost: $35,000
No Interest, Full Ownership
4. Comparison Results Summary
| Option | Monthly Payment | Total Cost | Ownership? |
|---|---|---|---|
| Bank Loan (48mo) | $690 | $35,120 | ✅ Yes |
| Dealer Loan (60mo) | $551 | $38,060 | ✅ Yes |
| Lease (36mo) | $450 | ~$18,000 | ❌ No |
| Cash | $0 (Upfront) | $35,000 | ✅ Yes |
Key Takeaways:
✔ Lowest Monthly Payment? Lease ($450)
✔ Cheapest Long-Term? Bank Loan ($35,120)
✔ Best for Flexibility? Lease (Swap cars often)
✔ Best for Ownership? Cash or Short-Term Loan
5. Advanced Features in a Good Calculator
Amortization Schedule (See how much goes to interest vs. principal)
Early Payoff Savings (How much interest you save by paying extra)
Tax & Fee Estimator (Includes registration, sales tax, etc.)
Lease vs. Buy Analysis (When leasing makes sense)
6. Best Auto Payment Comparison Tools
🔹 Edmunds Lease vs. Buy Calculator
🔹 Bankrate Auto Loan Comparison Tool
🔹 NerdWallet Auto Affordability Calculator
7. Pro Tips for Smart Comparisons
🔎 Negotiate the Car Price First (Before discussing financing)
🔎 Check Credit Score (Better score = lower APR)
🔎 Avoid Long Loan Terms (>60mo) (Higher interest, risk of being "upside-down")
🔎 Compare Total Cost, Not Just Monthly Payment