Car Lease Calculator
Estimate your monthly car lease payments by entering the vehicle details below.
24 Months
36 Months
48 Months
60 Months
(APR / 2400)
Estimated Monthly Payment
$0.00
Monthly Depreciation:
$0.00
Monthly Rent Charge (Interest):
$0.00
Base Monthly Payment:
$0.00
Monthly Sales Tax:
$0.00
Understanding Your Car Lease Calculation
Leasing a vehicle is often more complex than buying because you aren't paying for the whole car; you are paying for the depreciation of the car during the time you drive it, plus interest and taxes.
Key Components of a Lease
- Gross Capitalized Cost: This is the "negotiated price" of the vehicle. Just like buying, you should always negotiate the price down from the MSRP.
- Residual Value: This is what the leasing company predicts the car will be worth at the end of your lease. A higher residual value usually means a lower monthly payment because you are responsible for less depreciation.
- Money Factor: This is essentially the interest rate on a lease. To convert a money factor to an APR (Annual Percentage Rate), multiply it by 2,400. For example, a .00125 money factor equals a 3% APR.
- Capitalized Cost Reduction: This includes your down payment, trade-in value, and any manufacturer rebates that reduce the amount being financed.
Example Calculation
Imagine a car with an MSRP of $35,000 and a negotiated price of $32,000. If the residual value is 60%, the car is expected to be worth $21,000 after 36 months. You are paying for the $11,000 difference ($32,000 – $21,000) divided over 36 months, plus the rent charge and taxes.
3 Tips to Lower Your Lease Payment
- Negotiate the Sale Price: Don't let the dealer tell you the price is fixed. Lowering the cap cost is the fastest way to lower the payment.
- Choose High-Residual Cars: Vehicles that hold their value well (like certain Japanese SUVs or luxury brands) often lease for less than cheaper cars with poor resale value.
- Verify the Money Factor: Some dealers "mark up" the money factor provided by the bank. Always ask what the "buy rate" is from the manufacturer's financing arm.