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Car Lease Payment Calculator

Estimate monthly car lease payments.

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Results

Estimated Lease Payment
Total Lease Cost$18,721.79
Equivalent APR6.00%

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Assumptions

  • Calculated locally from the inputs shown in this report.

Sensitivity preview

MSRP / Sticker -10%: Estimated Lease Payment $574.96

MSRP / Sticker Current: Estimated Lease Payment $520.05

MSRP / Sticker +10%: Estimated Lease Payment $465.14

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About this Auto Lease Calculator

Leasing allows you to drive a new car for a lower monthly payment than buying, but the math can be confusing. This calculator breaks down the lease fee into Depreciation and Finance Charge (Rent Charge).

How to use this calculator

  1. Enter the MSRP (Sticker Price).
  2. Enter the Negotiated Price (Cap Cost).
  3. Input the Residual Value % (from dealer or lease guide).
  4. Enter the Money Factor (interest rate).
  5. The result is your monthly payment with tax included.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

A lease payment has two parts: 1. Depreciation: (Net Cap Cost - Residual) / Term 2. Finance Charge: (Net Cap Cost + Residual) * Money Factor Total Monthly = Depreciation + Finance + Tax.

Inputs explained

MSRP

Manufacturer's Suggested Retail Price. The residual value is calculated from this number.

Negotiated Price

Also called 'Capitalized Cost'. Negotiate this just like buying a car. Lower is better.

Residual Value

The car's estimated worth at the end of the lease, expressed as a percentage of MSRP. Higher is better for lower payments.

Money Factor

The financing rate. To convert to APR, multiply by 2400. (e.g., 0.0025 * 2400 = 6% APR).

Understanding your results

The Monthly Payment is what you owe. The Total Lease Cost shows the full amount you will pay over the term to 'rent' the car.

Example scenarios

Good Lease Deal

MSRP $35k, Negotiated $32k, Residual 60%, MF 0.0015 (3.6% APR). Monthly: ~$360. You are paying mostly for the depreciation of the $11k difference.

Bad Lease Deal

MSRP $35k, Negotiated $35k (Full Price), Residual 50%, MF 0.003 (7.2% APR). Monthly: ~$580. You are paying for a huge depreciation chunk plus high interest.

Key Features

  • Money Factor to APR conversion
  • Sales Tax integration
  • Residual Value calculation

Things to Keep in Mind

Does not include dealer documentation fees or registration fees, which are usually paid upfront.

Tips & Best Practices

  • Always negotiate the 'Cap Cost' (Vehicle Price). Dealers often pretend lease prices are fixed, but they aren't.
  • Don't put money down on a lease ('Cap Cost Reduction'). If the car is totaled, that money is lost. Pay higher monthly instead.
  • Check the mileage limits. Over-mileage fees can be expensive ($0.15-$0.25 per mile).

Glossary of Terms

Capitalized Cost
The negotiated selling price of the vehicle.
Residual Value
The value of the car at the end of the lease term.
Money Factor
The interest rate presented as a decimal factor.

Frequently Asked Questions

What is a Money Factor?
It is a different way of expressing the interest rate. Multiply the Money Factor by 2400 to get the equivalent APR percentage.
Is it better to have a high or low Residual Value?
A HIGH residual value is better for leasing. It means the car holds its value, so you pay for less depreciation during the lease term.
Can I end a lease early?
Usually, yes, but it is expensive. You typically owe the remaining payments plus an early termination fee.