🚗 Lease Calculator
Calculate car lease payment
How to Use This Calculator
Enter MSRP/Selling Price
Input the Manufacturer's Suggested Retail Price (MSRP) or the negotiated selling price of the vehicle.
Enter Residual Value
Enter the residual value - the estimated value of the vehicle at the end of the lease term. This is typically expressed as a percentage of MSRP or as a dollar amount.
Enter Money Factor/Interest Rate
Enter the money factor (multiply by 2,400 to get APR) or enter the annual interest rate directly. This represents the financing cost of the lease.
Enter Lease Term and Down Payment
Select the lease term (typically 24, 36, or 48 months) and enter any down payment or capitalized cost reduction.
Review Lease Payment
See your monthly lease payment, which consists of depreciation and finance charges, along with total lease cost.
Formula
Depreciation Fee = (MSRP - Residual Value - Down Payment) ÷ Lease Term
Finance Fee = (MSRP + Residual Value) × Money Factor
Monthly Payment = Depreciation Fee + Finance Fee
Example Calculation:
If MSRP $35,000, residual $20,000, money factor 0.00125 (3% APR), term 36 months, down $0:
• Depreciation = ($35,000 - $20,000 - $0) ÷ 36 = $416.67/month
• Finance fee = ($35,000 + $20,000) × 0.00125 = $68.75/month
• Monthly payment = $416.67 + $68.75 = $485.42/month
About Lease Calculator
A car lease calculator helps you calculate monthly lease payments for vehicle leases. Car leasing involves paying for the depreciation of a vehicle over a set period (typically 24-48 months) plus finance charges, rather than purchasing the vehicle outright. Lease payments consist of two components: depreciation fee (the difference between the vehicle's value and residual value, divided by the lease term) and finance fee (the cost of financing the lease). This calculator helps you understand lease costs and compare leasing vs. buying.
When to Use This Calculator
- Lease Planning: Calculate monthly lease payments before leasing
- Lease Comparison: Compare different lease offers
- Lease vs. Buy: Compare leasing costs to buying costs
- Budget Planning: Plan your budget for a leased vehicle
Understanding Car Leasing
- Lease Payments: Pay for depreciation plus finance charges
- Residual Value: Estimated value at lease end
- Money Factor: Financing cost (multiply by 2,400 for APR)
- Mileage Limits: Typically 10,000-15,000 miles/year with overage charges
- End of Lease: Return vehicle or purchase at residual value
Why Use Our Calculator?
- ✅ Payment Calculation: See exact monthly lease payment
- ✅ Cost Breakdown: Understand depreciation and finance charges
- ✅ Lease Comparison: Compare different lease offers
- ✅ Budget Planning: Plan your lease budget
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
How are lease payments calculated?
Lease payments consist of two components: (1) Depreciation fee = (MSRP - Residual - Down Payment) ÷ Lease Term, and (2) Finance fee = (MSRP + Residual) × Money Factor. The monthly payment is the sum of these two fees.
What is a money factor?
A money factor is the financing rate for a lease, expressed as a decimal (e.g., 0.00125). To convert to APR, multiply by 2,400. For example, 0.00125 × 2,400 = 3% APR. Lower money factors mean lower lease payments.
What is residual value?
Residual value is the estimated value of the vehicle at the end of the lease term. It's expressed as a percentage of MSRP or as a dollar amount. Higher residual values result in lower lease payments because you're paying for less depreciation.
Should I lease or buy a car?
Leasing may be better if you: want lower monthly payments, like driving new cars every few years, don't drive many miles, and don't want to deal with selling/trading. Buying may be better if you: want to own the car, drive many miles, keep cars long-term, and want to build equity.