Auto Lease Calculator | Estimate Monthly Payments

Auto Lease Calculator

Modify the values and click the calculate button to use

$
$
i The value of your current vehicle if trading it in
$
i Your local sales tax rate for vehicle purchases
i The estimated value of the vehicle at lease end
i The lease interest rate (divide APR by 2400 to get money factor)

Lease Summary

Monthly Payment: $0.00
Total Lease Cost: $0.00
Total Interest: $0.00
Total Tax: $0.00
Residual Value Amount: $0.00
Total Depreciation: $0.00
Total Payments: $0.00

Lease Advice

Enter your lease details to get personalized advice.

Auto Loan Calculator Lease Calculator

The Auto Lease Calculator can help estimate monthly lease payments based on total auto price or vice versa. For more information about or to do calculations involving leases in general, please use the Lease Calculator.

Auto Leases

A lease is a contract allowing a party to convey property to another party for a specified time, usually in return for a periodic payment. A car lease allows a person to drive a car for a fixed period of time as they make a down payment as well as monthly lease payments until the lease ends. It can help to think of a car lease as a long-term car rental; while car rentals generally last for as little as a day or even just a few hours, car leases average between two and four years.

Lease Variables

Several variables are required to calculate the monthly lease on any vehicle:

  • Auto Price – Also known as capitalized cost, it refers to the retail price of the car.
  • Money Factor – This is the interest rate expressed differently and used specifically in the context of car leases.
  • Lease Term – This is the length of the lease. Most leases run between 2 to 4 years.
  • Residual Value – Sometimes called lease-end value. In essence, the residual value of a car is the amount it can be bought for at the end of the lease.

Mileage

Most leases will have a mileage cap, which is the maximum number of miles the car can be driven during the life of the lease. In the U.S., standard auto leases generally allow annual mileage limits of 10,000 to 15,000, with most coming in at 12,000.

FactorLeasingBuying
Monthly PaymentLowerHigher
Upfront CostsLowerHigher
OwnershipNo equity builtFull ownership
MaintenanceOften covered by warrantyYour responsibility
MileageRestrictedUnlimited
FlexibilityChange every few yearsLong-term commitment

Negotiation Tips

  • Negotiate the capitalized cost (vehicle price) first, just as if you were buying the car.
  • Research the money factor and residual value before negotiating – these are often not disclosed upfront.
  • Compare lease offers from multiple dealerships to get the best deal.

Money-Saving Tips

  • Consider leasing a vehicle that holds its value well (higher residual value).
  • Putting down multiple security deposits can sometimes lower your money factor.
  • Watch out for unnecessary add-ons that increase your monthly payment.

End of Lease

  • Start preparing your vehicle for return 2-3 months before lease end.
  • Consider getting a pre-return inspection to identify any potential charges.
  • Compare the residual value to current market value – it might make sense to buy the car.

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How to Use the Auto Lease Calculator

  1. Enter Vehicle Details
    • Auto Price: Input the total price of the vehicle (e.g., $30,000).
    • Lease Term: Select the lease duration (24, 36, 48, or 60 months).
  2. Add Financial Terms
    • Down Payment: Enter any upfront payment (e.g., $3,000).
    • Trade-in Value: If trading a vehicle, input its value (e.g., $5,000).
    • Sales Tax: Enter your local tax rate (e.g., 6%).
  3. Set Lease-Specific Values
    • Residual Value: The car’s estimated value at lease end (e.g., 60% of auto price).
    • Money Factor (APR): The lease interest rate (e.g., 4.8% APR).
  4. Adjust Optional Fees(Check/Uncheck)
    • Acquisition Fee: Typically $595 (added to capitalized cost).
    • Disposition Fee: Usually $395 (paid at lease end).
    • GAP Insurance: ~$20/month (covers depreciation gaps).
  5. Click “Calculate”
    • Instantly view your monthly payment, total lease cost, and personalized advice.
  6. Compare Scenarios
    • Tweak values (e.g., increase down payment or lease term) to see how payments change.
3D blue-and-white lease calculator dashboard with sliders for car price and loan terms, displaying $497/month payment

Frequently Asked Questions (FAQ)

1. How does the Auto Lease Calculator work?

The tool estimates your monthly lease payment by analyzing:

  • Vehicle price
  • Lease term (24–60 months)
  • Down payment/trade-in value
  • Residual value (car’s worth at lease end)
  • Money factor (lease interest rate)

Formula:
Monthly Payment = (Depreciation + Finance Charge) + Tax

2. What is a “money factor”? How is it different from APR?

  • Money factor is the lease version of an interest rate (e.g., 0.0025).
  • Convert to APR: Multiply by 2,400 (e.g., 0.0025 × 2,400 = 6% APR).
  • Tip: Lower money factor = Better deal. Always ask dealers for this rate!

3. What’s a good residual value percentage?

  • Typical range: 50–65% of the car’s original price.
  • Higher % = Lower payments (common for luxury brands like BMW or Mercedes).
  • Check your lease contract for the exact residual value.

4. Should I put money down on a lease?

  • Pros: Reduces monthly payments.
  • Cons: Risk losing the down payment if the car is totaled/stolen.
  • Alternative: Consider $0 down and higher monthly payments.

5. What fees are included in a lease?

  • Acquisition fee (~$595): Charged by the leasing company.
  • Disposition fee (~$395): Due at lease end if you don’t buy the car.
  • GAP insurance (~$20/month): Covers depreciation gaps (optional).

6. Can I negotiate a lease like a car purchase?

Yes! Focus on:

  • Capitalized cost (vehicle price)
  • Money factor (negotiate based on credit score)
  • Mileage limits (standard is 12,000 miles/year)

7. What happens if I exceed the mileage limit?

  • Fee: Typically $0.15–$0.30 per extra mile.
  • Avoid: Pre-negotiate higher mileage limits or buy extra miles upfront.

8. Is leasing better than buying?

Leasing is ideal if you:

  • Want lower monthly payments
  • Prefer driving new cars every 2–3 years
  • Don’t mind mileage restrictions

Buying is better if you:

  • Drive >15,000 miles/year
  • Want to build equity
  • Plan to keep the car long-term

9. How accurate is this calculator?

  • Estimate only: Actual terms vary by dealer, credit score, and promotions.
  • For exact numbers, get quotes from multiple dealerships.

10. Can I use this for any vehicle?

Yes! Works for:

  • New cars
  • Certified pre-owned (CPO) leases
  • Electric vehicles (EVs)

Note: Residual values are typically higher for EVs.

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