Auto Lease Calculator
Calculate monthly lease payments for a new or used vehicle
🚗 Vehicle & Lease Details
$
months
$
$
%
$
💰 Interest Rate
%
$517.63
Estimated Monthly Lease Payment
Capitalized Cost
$37,000.00
Depreciation Fee
$333.33
Money Factor
0.00250
Monthly Interest Fee
$155.00
Monthly Tax
$29.30
Total Lease Cost
$18,634.68
Lease Buyout Cost (Residual + Remaining Payments)
$0.00
About 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.
Key Lease Terms
- Auto Price (Capitalized Cost): The retail price of the car, which can be negotiated
- Money Factor: The interest rate expressed differently for leases (APR ÷ 2400)
- Lease Term: Length of the lease, typically 24-48 months
- Residual Value: The car's estimated value at lease end, set by the financial institution
- Mileage Cap: Maximum miles allowed (typically 10,000-15,000 per year)
Why Lease?
- Lower down payment and monthly payments than buying
- Leased cars can be written off as a business expense
- Less worry about maintenance (cars are under warranty)
- Option to test drive a car before committing to purchase
Considerations
- No equity built at lease end (similar to renting)
- Mileage restrictions (typically 10,000-15,000 miles/year)
- Excessive wear and tear charges possible
- Early termination fees if ending lease early
How the Calculator Computes Monthly Leases
Formula:
1. Capitalized Cost = Auto Price - Down Payment - Trade-in Value
2. Depreciation Fee = (Capitalized Cost - Residual Value) ÷ Lease Term
3. Money Factor = APR ÷ 2400
4. Interest Fee = (Capitalized Cost + Residual Value) × Money Factor
5. Monthly Tax = (Depreciation Fee + Interest Fee) × Sales Tax Rate
6. Monthly Payment = Depreciation Fee + Interest Fee + Monthly Tax
1. Capitalized Cost = Auto Price - Down Payment - Trade-in Value
2. Depreciation Fee = (Capitalized Cost - Residual Value) ÷ Lease Term
3. Money Factor = APR ÷ 2400
4. Interest Fee = (Capitalized Cost + Residual Value) × Money Factor
5. Monthly Tax = (Depreciation Fee + Interest Fee) × Sales Tax Rate
6. Monthly Payment = Depreciation Fee + Interest Fee + Monthly Tax
Getting Out of a Lease Early
- Return the car - Pay early termination fee and remaining depreciation
- Transfer the lease - Find someone to take over your lease (with admin fees)
- Buyout the vehicle - Purchase the car for the specified buyout price
- Talk to the lessor - Request payment relief or modified terms