Lexus Lease Payment Calculator
Estimate your monthly Lexus lease payment by entering the details below.
Usually between 45% and 65% for Lexus.
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10,000 miles/year
12,000 miles/year
15,000 miles/year
17,500 miles/year
20,000 miles/year
Divide your annual interest rate by 2400 (e.g., 5% APR / 2400 = 0.00208).
Estimated Monthly Payment: $0.00
Understanding Your Lexus Lease Payment
Leasing a Lexus offers a way to drive a new luxury vehicle with potentially lower monthly payments compared to financing. However, understanding how those payments are calculated is key to negotiating the best deal. This calculator helps demystify the process by breaking down the main components that contribute to your monthly lease cost.
Key Components of a Lease Payment:
- Capitalized Cost (Cap Cost): This is the price of the vehicle that the leasing company agrees to lease to you. It's similar to the negotiated price when buying a car. The Adjusted Capitalized Cost is the Cap Cost after subtracting your down payment (Cap Reduction) and any other incentives.
- Residual Value: This is the estimated value of the vehicle at the end of your lease term. It's usually expressed as a percentage of the vehicle's MSRP, determined by the leasing company based on mileage, term, and the specific model. A higher residual value generally leads to lower monthly payments.
- Money Factor: This is essentially the interest rate for your lease, expressed as a small decimal number. To convert it to an approximate Annual Percentage Rate (APR), multiply the money factor by 2400. For example, a money factor of 0.00125 is equivalent to about 3% APR (0.00125 * 2400 = 3%).
- Lease Term: The duration of the lease agreement, typically in months (e.g., 24, 36, 39, 48 months).
- Mileage Allowance: The number of miles you are allowed to drive per year without incurring excess mileage charges.
How the Monthly Payment is Calculated:
The monthly lease payment is primarily composed of two parts:
- Depreciation Cost: This is the amount the vehicle is expected to lose in value over the lease term. It's calculated as:
(Adjusted Cap Cost - Residual Value) / Lease Term (in months) - Finance Charge (Rent Charge): This is the interest you pay on the average amount of money the leasing company has tied up in the vehicle during the lease. It's calculated using the money factor:
(Adjusted Cap Cost + Residual Value) * Money Factor
Your total estimated monthly payment is approximately the sum of the monthly depreciation cost and the monthly finance charge. Additional fees, taxes, and insurance are typically not included in this basic calculation but will affect your overall cost of leasing.
Disclaimer: This calculator provides an estimate based on common leasing formulas. Actual lease payments may vary based on the specific terms offered by Lexus Financial Services, individual creditworthiness, dealer fees, taxes, and other factors. Always consult with your Lexus dealer for precise figures.