Auto Lease Calculator

    Calculate your monthly lease payments and total lease cost

    Lease Details

    Enter your vehicle lease information

    About the Auto Lease Calculator

    The Auto Lease Calculator helps you estimate your monthly lease payments, total lease cost, and understand the factors that influence what you’ll pay over time. It’s useful for comparing lease offers and deciding whether leasing or buying a car fits your financial goals.

    •How Lease Payments Work

    A lease payment generally consists of two main parts:

    • –Depreciation Fee: The portion of the vehicle’s value you use during the lease term, calculated as (Capitalized Cost − Residual Value) ÷ Lease Term.
    • –Finance Fee: The interest charged for leasing, based on (Capitalized Cost + Residual Value) × Money Factor.

    •Key Lease Terms

    • –Capitalized Cost: The negotiated vehicle price minus any down payment or trade-in value.
    • –Residual Value: The estimated value of the vehicle at the end of the lease term.
    • –Money Factor: The lease’s interest rate in decimal form (multiply by 2400 to get approximate APR).
    • –Lease Term: The duration of the lease, usually 24–48 months.
    • –Disposition Fee: Charged at the end of the lease to prepare the vehicle for resale.
    • –Mileage Allowance: The maximum miles you can drive annually before incurring extra charges.

    •Example Calculation

    1. 1.Vehicle Price (Capitalized Cost): $28,000
    2. 2.Residual Value: $18,000
    3. 3.Lease Term: 36 months
    4. 4.Money Factor: 0.0025
    5. 5.Monthly Payment = Depreciation Fee + Finance Fee = [(28,000 − 18,000) ÷ 36] + [(28,000 + 18,000) × 0.0025] = $392.78 (approx.)

    •Tips for Better Lease Deals

    • –Negotiate the capitalized cost like a purchase price — lower it to reduce payments.
    • –Choose a car with a high residual value for lower depreciation fees.
    • –Limit upfront fees and avoid unnecessary add-ons.
    • –Stay within your mileage limit to avoid costly penalties.

    •Requirements

    • –Good credit score for favorable money factor rates.
    • –Stable income to ensure monthly payments are manageable.
    • –Understanding of mileage limits and wear-and-tear policies.

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