🚗 Car Lease Calculator
Calculate car lease payments
How to Use This Calculator
Enter Car Price and Residual Value
Input the car's negotiated price (MSRP minus any discounts) and the residual value (predicted value at lease end). Residual value is typically 50-60% of MSRP for a 36-month lease.
Enter Money Factor
Enter the money factor (lease equivalent of interest rate). Money factor is typically 0.001 to 0.003. You can convert APR to money factor by dividing by 2400 (e.g., 3% APR = 0.00125).
Set Lease Term and Additional Payments
Enter the lease term in months (typically 24, 36, or 48 months). Optionally add any down payment or trade-in value to reduce the capitalized cost.
Review Results
Click "Calculate Lease" to see your estimated monthly payment and total lease cost. Use this to compare different lease offers and make informed decisions.
Formula
Monthly Payment = Depreciation Fee + Finance Fee
Depreciation Fee = (Capitalized Cost - Residual Value) / Lease Term
Finance Fee = (Capitalized Cost + Residual Value) × Money Factor
Where:
• Capitalized Cost = Car Price - Down Payment - Trade-In Value
• Residual Value = Predicted value at lease end
• Money Factor = Lease interest rate (divide APR by 2400)
Example Calculation:
If car price is $30,000, residual is $15,000, money factor is 0.00125, term is 36 months, with $2,000 down:
• Capitalized Cost = $30,000 - $2,000 = $28,000
• Depreciation = ($28,000 - $15,000) / 36 = $361.11
• Finance Fee = ($28,000 + $15,000) × 0.00125 = $53.75
• Monthly Payment = $361.11 + $53.75 = $414.86
About Car Lease Calculator
A car lease calculator helps you estimate monthly lease payments and total lease costs. Leasing a car allows you to drive a new vehicle for a set period (typically 24-48 months) with lower monthly payments than buying. At lease end, you return the car or can purchase it at the residual value. This calculator helps you understand lease costs and compare leasing vs. buying options.
When to Use This Calculator
- Lease Shopping: Estimate monthly payments before negotiating a lease
- Comparison: Compare different lease offers and terms
- Budget Planning: Determine if leasing fits your monthly budget
- Lease vs. Buy: Compare total costs of leasing vs. buying
- Negotiation: Understand lease components to negotiate better terms
Key Lease Terms
- Capitalized Cost: The negotiated price of the car (like purchase price)
- Residual Value: Predicted value of the car at lease end (set by lessor)
- Money Factor: The lease equivalent of an interest rate (lower is better)
- Depreciation: The difference between capitalized cost and residual value
- Lease Term: Length of the lease (typically 24, 36, or 48 months)
Why Use Our Calculator?
- ✅ Accurate Calculations: Uses standard lease formulas for precise results
- ✅ Quick Comparison: Easily compare different lease scenarios
- ✅ Total Cost Visibility: See both monthly payment and total lease cost
- ✅ Easy to Use: Simple interface with clear inputs
- ✅ 100% Free: No registration or payment required
Lease vs. Buy Considerations
- Leasing Advantages: Lower monthly payments, always drive new car, no selling hassle, warranty coverage
- Leasing Disadvantages: No ownership, mileage restrictions, wear and tear charges, ongoing payments
- Buying Advantages: Build equity, no mileage limits, can modify car, own asset
- Buying Disadvantages: Higher monthly payments, depreciation, maintenance costs, selling hassle
Frequently Asked Questions
What is a money factor?
A money factor is the lease equivalent of an interest rate. It's typically expressed as a small decimal (e.g., 0.00125). To convert to an approximate APR, multiply by 2400. For example, 0.00125 × 2400 = 3% APR. Lower money factors mean lower lease costs.
What is residual value?
Residual value is the predicted value of the car at the end of the lease term. It's set by the leasing company and determines how much depreciation you'll pay. Higher residual values mean lower monthly payments because you're paying for less depreciation.
Should I put money down on a lease?
Putting money down on a lease reduces your monthly payment but doesn't build equity. If the car is totaled or stolen, you typically lose your down payment. Consider keeping your down payment low or zero and investing the money instead. Only put down money if it significantly improves the lease terms.
What happens at the end of a lease?
At lease end, you typically have three options: return the car and walk away (may have fees for excess wear/mileage), buy the car at the residual value, or lease or buy a new car. Review your lease agreement for specific terms and fees.
What are typical lease terms?
Most leases are 24, 36, or 48 months. Shorter terms (24 months) typically have higher monthly payments but allow you to get a new car more frequently. Longer terms (48 months) have lower payments but you're committed longer. Most people choose 36-month leases for a balance of payment and flexibility.
Is leasing better than buying?
Whether leasing or buying is better depends on your situation. Leasing works well if you want lower payments, always drive a new car, don't drive many miles, and prefer not dealing with selling. Buying is better if you want to own, drive many miles, keep cars long-term, or build equity. Use this calculator to compare costs.