Car Loan and Auto Leasing Calculator

How to use

1. Enter the price of the vehicle you plan to purchase.
2. Specify the down payment amount or percentage.
3. Select the financing term in months or years.
4. Enter the annual interest rate offered by the bank or finance company.
5. If applicable, add fees, insurance payments, and other additional costs.
6. The calculator will show the loan amount, estimated monthly payment, total payments, and overpayment.

What Is a Car Loan

A car loan is financing for purchasing a vehicle using funds from a bank or other financial institution. The borrower gets the opportunity to buy the car now and repays the borrowed funds over an agreed period, including interest and other contractually stipulated payments.

Depending on the contract terms, the purchased vehicle may serve as collateral for the loan. The procedure for registering ownership, restrictions on vehicle transfer, and other conditions are determined by the contract and applicable law.

• Vehicle price and down payment amount
• Loan amount and annual interest rate
• Loan term and monthly payment
• Fees, insurance, and total payment amount

What Is Auto Leasing

Auto leasing is a way to use a vehicle under a lease agreement. The leasing company transfers the vehicle to the lessee for an agreed period, and the lessee makes the payments stipulated in the agreement.

In many financial leasing schemes, the vehicle remains the property of the lessor until the conditions specified in the agreement are met. Transfer of ownership, if provided for, may occur after all payments are made and buyout conditions are fulfilled.

• Advance payment and regular lease payments
• Fees, insurance, and additional payments
• Buyout payment at end of term
• Terms of return or transfer of ownership

Car Loan vs. Auto Lease: Which Is Better

The choice between a car loan and auto leasing depends on the vehicle price, down payment size, financing term, interest rate, fees, insurance, and ownership transfer conditions.

It cannot be stated categorically that a loan is always cheaper than a lease or vice versa. For a correct comparison, all mandatory payments, the down payment, buyout value, and contract terms must be taken into account.

How the Monthly Car Loan Payment Is Calculated

With a standard annuity loan, the borrower pays approximately the same amount each month. At the beginning of the term, a larger portion of the payment typically goes toward interest, while the principal repayment share increases over time.

The annuity payment formula is: A = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where A is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of payments.

Car Loan Calculation Example

Suppose a vehicle costs UAH 800,000. The buyer makes a 20% down payment and finances the remainder for 5 years at a nominal annual rate of 15%.

• Vehicle price — UAH 800,000
• Down payment — UAH 160,000 (20%)
• Loan amount — UAH 640,000
• Term — 60 months, rate — 15% per annum
• Estimated monthly payment — ~UAH 15,200
• Total payments — ~UAH 912,000
• Total cost including down payment — ~UAH 1,072,000
• Financing overpayment — ~UAH 272,000

How to Reduce Vehicle Financing Costs

• Compare offers with the same financing term
• Check not only the nominal rate but also the effective annual rate and total loan cost
• Clarify all fees, insurance payments, and additional services
• Assess the impact of the down payment on the financing amount
• Check early repayment options and associated conditions
• For leasing, factor in the buyout payment and ownership transfer terms
• Ensure the regular payment is affordable for your personal or family budget