Auto Lease Calculator
Calculate your monthly payments and total cost of leasing a vehicle with our easy-to-use lease calculator.
Understanding Auto Leases
Our Auto Lease Calculator helps you understand the true cost of leasing a vehicle and calculate your expected monthly payments. Leasing a car can be complex with various factors affecting your costs.
Key Leasing Terms Explained
- Residual Value: The projected value of the vehicle at the end of the lease term. Higher residual values lead to lower monthly payments.
- Money Factor: Similar to an interest rate, but expressed as a decimal. To convert to APR, multiply by 2400.
- Capitalized Cost: The negotiated price of the vehicle plus any fees being financed.
- Depreciation: The difference between the vehicle's initial value and its residual value - this is what you're primarily paying for in a lease.
Benefits of Leasing vs. Buying:
Leasing Advantages:
- Lower monthly payments
- Drive a new car every few years
- Typically under warranty for the entire lease
- No long-term commitment
- Lower down payment requirements
Leasing Disadvantages:
- Mileage restrictions and overage fees
- No ownership equity
- Potential wear and tear charges
- Higher insurance requirements
- Restrictions on vehicle modifications
How to Use the Calculator:
- Enter the negotiated vehicle price
- Input the residual value percentage (ask your dealer for this figure)
- Enter the money factor (again, available from your dealer)
- Select your lease term in months
- Add any down payment you plan to make
- Enter your local sales tax rate
- Click "Calculate Lease Payment" to see your results
Leasing Tips
To get the best lease deal:
- Negotiate the vehicle price (capitalized cost) before discussing monthly payments
- Ask about manufacturer lease specials and incentives
- Be realistic about your annual mileage needs
- Consider gap insurance to protect yourself if the vehicle is totaled
- Read the lease agreement carefully for hidden fees or conditions