Canadian Auto Loan vs. Lease Calculator
Compare monthly car loan financing with vehicle leasing, including trade-in sales tax savings (HST/GST/PST) and residual values.
Compare monthly car loan financing with vehicle leasing, including trade-in sales tax savings (HST/GST/PST) and residual values.
Compare monthly car loan financing with vehicle leasing, including trade-in sales tax savings (HST/GST/PST) and residual values. Calculate exact, penny-accurate projections compliant with 2026 CRA • Bank of Canada standards using Calconova's deterministic IEEE-754 (Decimal.js) calculation engine with instant breakdowns.
Financing vs Lease Terms
Monthly Finance Payment
$697.95
60 months • 6.49% APR
Monthly Lease Payment
$279.25
36 months • Tax included
Total Purchase Finance Cost
$58,877.18
Full equity owned at end
Lease Residual Buy-out Value
$26,400.00
55% of MSRP after 36 mo
Trade-In Tax Savings = TradeIn × SalesTaxRate
Monthly Loan = Principal × [i(1+i)^n] / [(1+i)^n - 1]
Monthly Lease = [(NetCap - Residual)/Months + (NetCap + Residual) × (APR/24)] × (1 + SalesTaxRate)Calculates financed loan payments with trade-in tax savings versus monthly lease depreciation plus rent charge with provincial sales tax applied monthly.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, or legal advice. Actual CRA tax brackets, provincial taxes, Bank of Canada rates, and lender criteria may vary. Calconova explicitly disclaims all liability for any decisions taken based upon these calculations. Consult a qualified financial advisor or CPA prior to executing financial commitments.
Under Canadian sales tax legislation, when you trade in a vehicle to a dealership, you only pay GST/PST/HST on the difference between the new vehicle's price and your trade-in's value. For example, in Ontario (13% HST), a $15,000 trade-in saves you $1,950 in immediate cash sales tax!
When leasing, you do not pay upfront sales tax on the entire vehicle value. Instead, provincial sales tax (e.g. 13% HST in Ontario or 14.975% in Quebec) is added directly to your monthly lease payment for the duration of the term.
Financing is typically better if you drive more than 20,000 km per year, plan to keep the vehicle for 5+ years, or want full ownership equity. Leasing offers lower monthly payments and allows business owners to write off lease payments as tax deductions, but requires returning the vehicle or paying the residual buy-out at the end.
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