Auto Lease Calculator
Calculate monthly lease payments and total lease costs.
Lease Information
APR: 2.40%
Lease Summary
About This Calculator
The Auto Lease Calculator helps you determine monthly lease payments and total lease costs for a vehicle. Leasing a car involves paying for the vehicle's depreciation plus finance charges over the lease term, with the option to purchase the vehicle at the end for the residual value.
This calculator accounts for the vehicle's MSRP, negotiated price, down payment, trade-in value, residual percentage, money factor (lease interest rate), and lease term to provide accurate payment estimates.
Formula & Calculation Method
Auto Lease Calculation:
Capitalized Cost = Negotiated Price - Down Payment - Trade-In Value
Residual Value = MSRP × Residual Percentage
Depreciation = Capitalized Cost - Residual Value
Monthly Depreciation = Depreciation ÷ Lease Term
Finance Charge = (Capitalized Cost + Residual Value) × Money Factor
Monthly Payment = Monthly Depreciation + Finance Charge
Total Cost = (Monthly Payment × Term) + Down Payment + Trade-In
The money factor is the lease equivalent of an interest rate. To convert money factor to APR, multiply by 2400. For example, a money factor of 0.001 equals approximately 2.4% APR.
How to Use This Calculator
- Enter MSRP: Input the Manufacturer's Suggested Retail Price of the vehicle.
- Enter Negotiated Price: Input the price you negotiated with the dealer.
- Enter Down Payment: Input any down payment or capitalized cost reduction.
- Enter Trade-In Value: Input the value of your trade-in vehicle (if applicable).
- Enter Residual Value: Input the residual percentage (typically 50-65% for 36-month leases).
- Enter Money Factor: Input the lease money factor (e.g., 0.001 for ~2.4% APR).
- Enter Lease Term: Input the lease duration in months (typically 24, 36, or 48 months).
- View Results: See monthly payment, total cost, and residual value.
Frequently Asked Questions
What is a money factor?
Money factor is the lease equivalent of an interest rate. To convert to APR, multiply by 2400. For example, 0.001 money factor = 2.4% APR. Lower money factors mean lower lease costs.
What is residual value?
Residual value is the estimated value of the vehicle at the end of the lease term, expressed as a percentage of MSRP. Higher residual values typically result in lower monthly payments.
Should I put money down on a lease?
Putting money down reduces monthly payments but doesn't reduce total cost if the vehicle is totaled (gap insurance may cover this). Consider keeping down payment low and investing the money instead.
What happens at the end of a lease?
At lease end, you can return the vehicle, purchase it for the residual value, or lease a new vehicle. You may be responsible for excess wear and mileage charges if you return the vehicle.
Expert Reviewed
This calculator was reviewed by NumCalculators Editorial Team, Multi-disciplinary Expert Team