Car Lease Calculator

How to Use the Car Lease Calculator

1. Enter MSRP, negotiated price and lease terms.
2. Enter money factor (ask your dealer if you don't know) and residual value %.
3. Add down payment, trade in and any fees.
4. The calculator displays your estimated monthly payment, total cost and due at signing.

What is a Car Lease?

A car lease is a long term rental contract. You only pay for the car's depreciation and finance charges for the length of the lease then you turn in the car at the end of the lease. Leasing a car typically has lower monthly payments compared to buying but you don't own the car at the end of the lease.

How is a Lease Payment Calculated?

• Depreciation Fee: (Cap Cost - Down Payment - Trade-in - Residual Value) / Lease Term
• Finance Fee: (Cap Cost + Residual Value) × Money Factor
• Base Payment: Depreciation Fee + Finance Fee
• Tax: Base Payment × Sales Tax Rate
• Total Monthly Payment: Base Payment + Tax

Tips for Leasing a Car

• Negotiate a cap cost just like if you are buying.
• Verify the money factor and convert it to APR (multiply by 2400).
• Ask for details of all fees and due at signing.
• Know your mileage allowance and cost for excess mileage.
• Compare total lease cost, not just monthly payment.