Car Lease Calculator
Work out your monthly lease payment and compare leasing with buying
Lease Details
Capitalized cost before fees
Added to the capitalized cost
Set by the leasing company
Money factor 0.00200
Charged on each monthly payment
Lease Term
Monthly lease payment
$449.95
$2,449.95 due at signing (down payment + first month) · 36 months
Depreciation fee
$316.53
per month
Rent charge
$103.99
per month, the lease's interest
Total lease cost
$18,198
upfront + all payments
Residual value
$20,300
58.0% of MSRP
Lease vs Buy Over 36 Months
Leasing
$18,198
Total paid, then you return the car.
Buying with a 60-month loan
$18,508
$24,520 paid ($625.55/month), minus $6,012 of equity if the car is worth its residual value.
Leasing costs about $310 less over this period. The comparison uses the same rate for both and assumes the car sells for its residual value.
How Your Payment Is Calculated
| Item | How It's Worked Out | Amount |
|---|---|---|
| Gross capitalized cost | negotiated price + acquisition fee | $33,695.00 |
| Capitalized cost reduction | down payment + trade-in + rebates | -$2,000.00 |
| Adjusted capitalized cost | what you are financing | $31,695.00 |
| Residual value | car's value at lease end | $20,300.00 |
| Depreciation fee | (adjusted cap cost − residual) ÷ term | $316.53 |
| Rent charge | (adjusted cap cost + residual) × 0.00200 | $103.99 |
| Sales tax | 7.00% of the payment | $29.44 |
| Monthly payment | depreciation + rent charge + tax | $449.95 |
How Leasing Works
A lease pays for the part of the car you use: the drop from its capitalized cost to its residual value, plus a rent charge that works like interest. At the end you return the car or buy it for the residual. A higher residual or a lower money factor means a lower payment.
The Formulas
Depreciation = (cap cost − residual) ÷ term
Rent charge = (cap cost + residual) × MF
MF = APR ÷ 2,400
Cap cost = adjusted capitalized cost, MF = money factor
Lease Smarter
- •Negotiate the price of the car; the capitalized cost is not fixed
- •Ask for the money factor and multiply by 2,400 to compare it with loan rates
- •Keep the down payment small; it is lost if the car is totaled early
- •Pick a mileage allowance that fits your driving to avoid overage fees
- •Cars that hold their value well have higher residuals and cheaper leases