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Calculate monthly lease payments, compare lease vs buy, analyze money factor and residual value
Return the car and walk away. Pay disposition fee if applicable.
Purchase the car at the predetermined residual value.
Trade in for a new lease and enjoy the latest model.
An auto lease calculator is a comprehensive financial planning tool that helps you estimate all costs associated with leasing a vehicle. Unlike buying, leasing involves unique terms like money factor, residual value, and capitalized cost. Our calculator computes your monthly lease payment based on MSRP, negotiated selling price, down payment, residual value percentage, money factor (interest rate), lease term, and mileage allowance.
Beyond basic payment calculation, our advanced calculator includes features for comparing lease versus buy scenarios, analyzing total ownership costs including insurance and maintenance, viewing detailed payment breakdowns, checking affordability based on income, and understanding end-of-lease options. This helps you make informed decisions about whether leasing is right for you and how to negotiate the best lease deal.
Start by entering the MSRP (sticker price) and negotiated selling price (capitalized cost). The selling price should be at or below MSRP - negotiate this aggressively as it directly impacts your monthly payment. A $2,000 reduction in selling price can save you $55-$70 per month on a 36-month lease.
Enter your down payment (cap cost reduction) and trade-in value. Financial experts recommend minimal down payments on leases ($0-$2,000) because you don't build equity. If the vehicle is totaled early in the lease, you may not recover your down payment. Trade-in value reduces your capitalized cost and lowers monthly payments.
Choose your lease term (24, 36, 39, or 48 months - 36 months is most common), annual mileage allowance (10,000-18,000 miles), residual value percentage (typically 50-65% of MSRP), and money factor (lease interest rate). Higher residual values and lower money factors result in lower monthly payments.
Include acquisition fees, disposition fees, registration, dealer fees, sales tax, and any rebates. Review your monthly payment, total lease cost, payment breakdown, and lease vs buy comparison. Use the affordability check to ensure the payment fits your budget (should be ≤20% of monthly income).
Automatically converts money factor to APR so you can compare lease rates with loan rates easily.
Calculate residual value based on MSRP percentage and see how it impacts your monthly payment.
Side-by-side comparison of leasing versus financing to help you make the best financial decision.
Track total allowed mileage and calculate potential excess mileage fees at lease end.
See exactly how your payment is split between depreciation, finance charge, and sales tax.
View month-by-month payment details with cumulative totals. Export schedule as CSV file.
Calculate complete costs including insurance, maintenance, fuel, and all fees over lease period.
See recommended income based on the 20% rule to ensure you can comfortably afford the lease.
Capitalized cost is the negotiated selling price of the vehicle plus fees, minus down payment, trade-in, and rebates. This is the amount you're financing in the lease. Always negotiate the cap cost before discussing monthly payments with dealers. A lower cap cost directly reduces your monthly payment and total lease cost.
Residual value is the estimated worth of the vehicle at lease end, expressed as a percentage of MSRP (typically 50-65%). Higher residual values mean lower depreciation and lower monthly payments. Luxury brands like Lexus, Porsche, and Toyota typically have higher residual values (60-65%) than economy brands (50-55%). This is predetermined by the leasing company and generally not negotiable.
Money factor is the interest rate used in lease calculations. To convert to APR, multiply by 2,400. For example, a money factor of 0.00125 equals 3% APR. Good money factors range from 0.0010 to 0.0015 (2.4-3.6% APR). Unlike residual value, money factor is often negotiable - shop around and compare offers from multiple dealers and manufacturers' captive finance companies.
Always negotiate the capitalized cost (selling price) before discussing monthly payments. Aim for invoice price or below. A $2,000 reduction saves $55-$70/month on a 36-month lease.
Compare money factors from multiple dealers and manufacturers. A difference of 0.0005 (1.2% APR) can save $15-$25 per month. Credit unions often offer better rates than dealers.
Consider putting down $0-$2,000 maximum. Unlike buying, down payments on leases don't build equity. If the vehicle is totaled early in the lease, you may not recover your down payment. Consider using that money for investments or emergency funds instead.
Brands like Lexus, Toyota, Porsche, and Honda have higher residual values (60-65%), resulting in lower monthly payments. Check residual value guides before choosing a vehicle.
Challenge acquisition fees, dealer fees, and documentation fees. Some are negotiable or can be waived. Acquisition fees should be under $700, doc fees under $300.
Excess mileage costs $0.15-$0.30/mile. If you drive 15,000 miles/year, negotiate a higher allowance upfront - it's cheaper than paying excess fees later.
End of month, quarter, or year brings better deals and lower money factors. Manufacturers offer special lease programs with subsidized rates and higher residual values.
Some manufacturers allow multiple security deposits (MSDs) to reduce money factor by 0.0001-0.0002 per deposit. Deposits are refundable at lease end, saving you money on interest.
Leasing may be suitable if you: want lower monthly payments (typically 30-50% less than buying), prefer driving a new car every 2-3 years with latest technology and safety features, drive under 12,000-15,000 miles annually, want warranty coverage for the entire lease period, use the car for business (consult a tax professional about potential deductions), and prefer not dealing with selling or trading in later.
Buying may be better if you: want to build equity and own the vehicle, drive high mileage (over 15,000 miles/year), plan to keep the car 5+ years, want no restrictions on modifications or wear-and-tear, prefer no mileage limits, and want the option to sell or trade whenever you choose. Use our lease vs buy comparison tool to analyze which option may save you more money based on your specific situation.
An auto lease calculator is a financial tool that helps you estimate monthly lease payments, total lease costs, and compare leasing versus buying options. It factors in MSRP, selling price, down payment, residual value, money factor, lease term, mileage allowance, taxes, and fees to give you a comprehensive view of your lease agreement.
Monthly lease payment consists of three components: depreciation (difference between capitalized cost and residual value divided by lease term), finance charge (sum of capitalized cost and residual value multiplied by money factor), and sales tax. The formula is: Monthly Payment = Monthly Depreciation + Finance Charge + Tax.
Money factor is the interest rate used in lease calculations. To convert money factor to APR, multiply by 2,400. For example, a money factor of 0.00125 equals 3% APR (0.00125 × 2,400 = 3). Lower money factors mean lower finance charges and better lease deals.
Residual value is the estimated worth of the vehicle at the end of the lease term, expressed as a percentage of MSRP. Higher residual values (55-65%) result in lower monthly payments because you're only paying for the depreciation. Luxury brands typically have higher residual values than economy cars.
Financial experts recommend minimal down payments on leases, typically $0-$2,000. Unlike buying, down payments on leases don't build equity. If the leased vehicle is totaled or stolen early in the lease term, you may not recover your down payment. Consider using that money for investments or emergency funds instead.
A good lease deal has: 1) Selling price at or below MSRP, 2) Residual value above 55%, 3) Money factor below 0.0015 (3.6% APR), 4) Minimal fees (acquisition fee under $700), 5) Monthly payment under 1% of MSRP. For a $35,000 car, aim for payments under $350/month with minimal down payment.
Lease if you: want lower monthly payments, prefer driving new cars every 2-3 years, drive under 12,000 miles/year, and want warranty coverage. Buy if you: want to build equity, drive high mileage, plan to keep the car 5+ years, or want no restrictions. Use our lease vs buy comparison to see which saves you more.
Exceeding your mileage allowance costs $0.15-$0.30 per extra mile (typically $0.25/mile). If you drive 15,000 miles/year but have a 12,000-mile lease, you'll owe $750-$900 annually in excess mileage fees. Consider negotiating higher mileage upfront or buying the car at lease end to avoid these charges.
Common lease fees include: acquisition fee ($395-$995), disposition fee ($300-$500 at lease end), registration and title fees ($200-$500), dealer documentation fees ($100-$500), and security deposit (usually one month's payment, refundable). These fees are typically rolled into your capitalized cost.
Yes! Negotiate the selling price (capitalized cost), not the monthly payment. Also negotiate: money factor (interest rate), acquisition fee, dealer fees, and trade-in value. Get multiple dealer quotes, know the invoice price, and negotiate like you're buying. A $2,000 reduction in selling price saves $55-$70/month on a 36-month lease.
You have three options: 1) Return the vehicle and pay disposition fee ($300-$500), 2) Buy the car at the predetermined residual value, or 3) Trade it in for a new lease. If the car's market value exceeds the residual value, buying or trading in can be profitable. Otherwise, simply return it.
Capitalized cost (cap cost) is the negotiated selling price of the vehicle plus fees, minus down payment, trade-in, and rebates. It's the amount you're financing in the lease. Lower cap cost means lower monthly payments. Always negotiate the cap cost before discussing monthly payments with dealers.
Our calculator methodology is based on industry-standard lease calculations. For additional guidance, consult these authoritative sources:
Disclaimer: This calculator provides estimates for educational purposes. Actual lease terms may vary based on credit score, dealer negotiations, manufacturer incentives, and regional factors. Always review lease agreements carefully and consult with financial advisors for personalized advice.
Instantly see equivalent APR to compare with loan rates
Real-time comparison with equity analysis
Include insurance, maintenance, and fuel costs
See depreciation, finance charge, and tax separately
Calculate potential excess mileage fees
Understand all your choices before lease ends
Download complete schedule as CSV file
See recommended income based on 20% rule