Car Lease Calculator

Calculate your monthly lease payments and total lease costs

Vehicle Details

Purchase Price

Cash Down Payment

Net Trade-in Allowance

Lease Terms

Sales Tax Rate Percentage

Term (in months)

New Car Lending Rate (APR)

Car Value at End of Lease

Lease Calculation Results

Monthly Payment

$0.00

Estimated monthly lease payment including tax

Total Lease Cost

$0.00

Total amount paid over the lease term

Money Factor

0.00000

Equivalent money factor (interest rate ÷ 2400)

Cost Breakdown

Lease Details

Term	Depreciation	Interest	Taxes	Total Payment

This calculator provides estimates based on your inputs. Actual lease terms may vary. Print Results

A Car Lease Calculator helps you determine monthly payments, total lease costs, and compare leasing vs. buying. It’s ideal for those who want to drive a new car without long-term ownership.

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1. Key Lease Terms

A. Inputs Needed

1. Vehicle Price (MSRP) – Manufacturer’s Suggested Retail Price.

2. Negotiated Price – Discounted price after dealer negotiations.

3. Lease Term – Typically 24, 36, or 48 months.

4. Money Factor (Lease Interest Rate) – Expressed as a decimal (e.g., 0.0025 = ~6% APR).

5. Residual Value – Car’s estimated value at lease end (usually 50-60% of MSRP).

6. Down Payment & Fees – Includes capitalized cost reduction, acquisition fee, etc.

7. Annual Mileage Limit – Standard is 10,000–15,000 miles/year (excess incurs fees).

B. Outputs Calculated

✅ Monthly Payment
✅ Total Lease Cost (Payments + Fees)
✅ Effective Interest Rate (APR equivalent)
✅ Cost Per Mile
✅ Lease-End Buyout Price

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2. How Lease Payments Work

Formula:

Monthly Payment = (Depreciation + Finance Charge) + Taxes

1. Depreciation Cost = (Negotiated Price - Residual Value) / Lease Term

2. Finance Charge = (Negotiated Price + Residual Value) × Money Factor

3. Taxes = (Depreciation + Finance Charge) × Sales Tax Rate

Example Calculation

• MSRP: $40,000

• Negotiated Price: $36,000

• Residual Value (58%): $23,200

• Lease Term: 36 months

• Money Factor: 0.0025 (~6% APR)

• Down Payment: $3,000

• Fees: $1,000

Step 1: Depreciation Cost
($36,000 - $23,200) / 36 = **$355.56/month**

Step 2: Finance Charge
($36,000 + $23,200) × 0.0025 = **$148/month**

Step 3: Pre-Tax Payment
$355.56 + $148 = **$503.56/month**

Step 4: Add Taxes (8%)
$503.56 × 1.08 = **$543.85/month**

Total Lease Cost = ($543.85 × 36) + $3,000 (down) + $1,000 (fees) = **$23,578.60**

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3. Lease vs. Buy Comparison

Factor	Leasing	Buying
Monthly Cost	Lower	Higher
Ownership	No equity	You own the car
Mileage Limits	Yes (penalties)	No restrictions
Maintenance	Often covered under warranty	Your responsibility
Flexibility	Swap cars every few years	Long-term commitment

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4. Hidden Lease Costs to Watch For

⚠️ Disposition Fee ($300–$500) – Charged if you don’t buy the car at lease end.
⚠️ Excess Wear & Tear Fees – Dings, scratches, tire wear beyond "normal."
⚠️ Early Termination Fee – Costly if you end the lease early.
⚠️ Gap Insurance – Needed in case of a total loss (some leases include it).

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5. When Leasing Makes Sense

✔ You want a new car every 2–4 years.
✔ You drive under mileage limits.
✔ You prefer lower monthly payments.
✔ Business tax deductions (some leases qualify).

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6. Best Lease Calculators & Tools

🔹 Edmunds Lease Calculator (Detailed & accurate)
🔹 Leasehackr Calculator (Includes dealer incentives)
🔹 Bankrate / NerdWallet (Simple comparisons)

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7. Pro Tips for a Better Lease Deal

🔎 Negotiate the car price first (just like buying).
🔎 Compare money factors (lower = better).
🔎 Check for lease specials (manufacturer subsidies).
🔎 Avoid excessive down payments (you lose it if the car is totaled).