Lease Calculator

Calculate your monthly car lease payment and compare leasing vs. buying.

Lease Calculator

Free Tool

How to use Lease Calculator

Understanding your car lease payment before you sign is one of the most valuable things you can do — dealers rarely show you the full math. Our Lease Calculator breaks down every component of your monthly payment with complete transparency. Enter the key lease variables: • MSRP (sticker price) — the manufacturer's suggested retail price before negotiation • Negotiated Cap Cost — the price you actually agreed on (leave blank to use MSRP; negotiating this down is the most impactful lever you have on a lease) • Cap Cost Reduction — any upfront payment that reduces your financed amount (equivalent to a down payment, but unlike a car purchase, large lease down payments are risky — you can't recover them if the car is totaled) • Residual Value % — the percentage of MSRP the car is worth at lease end, set by the manufacturer. Higher residual = lower monthly payment. • Lease Term — 24, 36, 48, or 60 months • Money Factor or APR — toggle between the two. Money factor (e.g., 0.00125) is dealer's way of expressing the interest rate. Multiply by 2400 to convert to APR. • Sales Tax Rate — applied to the monthly payment • Acquisition Fee — finance fee charged by the manufacturer's finance arm (typically $600-900) Results instantly show: monthly payment, the depreciation component, the finance charge component, the residual value in dollars, and a color-coded breakdown bar showing what percentage of your payment is depreciation vs. interest vs. tax. Enable "Compare with Buying" to enter a loan APR, term, and down payment. The side-by-side comparison shows total cost of leasing vs. buying over the lease term, which option saves more in payments, and a break-even analysis — if you'd keep the car longer than the break-even point, buying makes more financial sense.

Frequently Asked Questions

What is money factor and how does it relate to APR?

Money factor is a decimal number (like 0.00125) that represents the interest rate on a lease. To convert to APR, multiply by 2400. So 0.00125 × 2400 = 3.0% APR. Dealers sometimes advertise very low money factors that sound confusing — always convert to APR to compare with familiar interest rates.

What is residual value and how does it affect my payment?

Residual value is the estimated worth of the car at lease end, expressed as a percentage of MSRP. It's set by the manufacturer's finance arm — you cannot negotiate it. A higher residual means you're financing a smaller portion of the car's value, resulting in a lower monthly payment. This is why some cars are excellent lease deals.

Should I put money down on a lease?

Generally no. Unlike a car purchase where equity builds, a lease down payment (cap cost reduction) simply reduces monthly payments without building any ownership. If the car is totaled or stolen, you lose that down payment entirely — insurance pays the leasing company, not you. Keep your money and invest it instead.

What happens at the end of a lease?

At lease end you have three options: return the car and walk away (paying any disposition fee, typically $300-400), purchase the car at the predetermined residual price, or start a new lease. If you've exceeded the mileage allowance, you'll pay a per-mile overage fee (typically $0.15-0.25 per excess mile).

When is leasing better than buying?

Leasing makes more financial sense when: you want a new car every 2-3 years, you drive under the mileage limit, the car has a high residual value (making payments low), and interest rates on leases are favorable. Buying makes sense when you plan to keep the car long-term, drive high mileage, or want to build equity.

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