Car Lease Calculator
Calculate monthly car lease payments with detailed breakdown of costs and fees
Car Lease Calculator
Basic Information
Sticker price of the vehicle
Final negotiated price with dealer
Duration of the lease agreement
Local sales tax rate
Car's value at end of lease (from dealer)
Interest rate factor (from dealer) - APR ÷ 2400
Additional Information (Optional)
Lease Payment Results
Total amount paid over 36 months (including down payment)
Lease Analysis
Example Calculation
Mid-Size SUV Lease Example
MSRP: $30,000
Negotiated Price: $28,000
Residual Value (60%): $18,000
Money Factor: 0.001 (2.4% APR)
Lease Term: 36 months
Down Payment: $2,000
Trade-in: $5,000
Calculation Steps
1. Net Capitalized Cost = $28,000 - $2,000 - $5,000 = $21,000
2. Monthly Depreciation = ($21,000 - $18,000) ÷ 36 = $83.33
3. Monthly Interest = ($21,000 + $18,000) × 0.001 = $39.00
4. Pre-tax Payment = $83.33 + $39.00 = $122.33
5. With 6% tax = $122.33 × 1.06 = $129.67/month
Lease vs Buy Quick Guide
Consider Leasing If:
- • You want lower monthly payments
- • You like driving newer cars
- • You drive less than 15,000 miles/year
- • You want warranty coverage
- • You can deduct for business use
Consider Buying If:
- • You want to build equity
- • You drive more than 15,000 miles/year
- • You want modification freedom
- • You plan to keep car long-term
- • You want no mileage restrictions
Lease Terms Explained
Money Factor
Interest rate in lease format. Multiply by 2400 to get APR.
Residual Value
Car's predicted value at lease end. Higher = lower payments.
Capitalized Cost
Total amount being financed after down payment and trade-in.
Acquisition Fee
Administrative fee charged by leasing company (usually $300-800).
Disposition Fee
Fee charged when returning the vehicle (typically $300-500).
Lease Negotiation Tips
Negotiate the car price, not just the monthly payment
Get multiple quotes from different dealers
Understand all fees before signing
Check for manufacturer incentives and rebates
Consider gap insurance for protection
Understanding Car Lease Calculations
How Car Leasing Works
Car leasing is essentially long-term rental where you pay for the vehicle's depreciation during your lease term, plus interest and fees. You don't own the car but have the right to use it for the agreed period.
Benefits of Leasing
- •Lower monthly payments compared to financing
- •Warranty coverage for most repairs
- •No need to sell or trade when done
- •Possible tax advantages for business use
Lease Payment Formula
Net Capitalized Cost = (Price + Fees) - (Down Payment + Trade-in + Rebates)
Monthly Depreciation = (Net Cap Cost - Residual Value) ÷ Lease Term
Monthly Interest = (Net Cap Cost + Residual Value) × Money Factor
Monthly Payment = Depreciation + Interest + Tax
Key Factors
- Residual Value: Higher residual = lower payments
- Money Factor: Lower money factor = less interest
- Lease Term: Longer term = lower monthly payment
- Down Payment: More down = lower monthly payment