Auto Finance
Lease
Calculator
Calculate your monthly car lease payment with money factor, residual value, and all fees. Includes buy vs lease comparison and mileage overage estimator.
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Monthly PMT
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Total Cost
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Eff. APR
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My Vehicle
Enter details below
MSRP: $0
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Cash & Trade-in
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Lease Term & Rate
mo
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Residual Value = $0 (% of MSRP)
Interest Rate
= APR: 3.00%
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Fees & Tax
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%
$/mi
Monthly Lease Payment
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Complete all steps to calculate
Deprec.
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Finance
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Tax
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Cap Cost
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Residual
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Total Paid
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Drive-Off
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💰 Cost Breakdown
🛣️ Mileage Overage Estimator
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mi
$/mi
How a Car Lease Payment is Calculated
A lease calculator breaks your monthly payment into three components: depreciation, finance charge, and tax. Understanding each one helps you negotiate a better deal and compare offers from different dealers fairly.
The Lease Payment Formula
Adjusted Cap Cost = Negotiated Price + Fees − Down − Trade-in − Rebates
Residual Value = MSRP × Residual %
Depreciation/mo = (Cap Cost − Residual) / Term
Finance Charge/mo = (Cap Cost + Residual) × Money Factor
Pretax Payment = Depreciation + Finance Charge
Monthly Tax = Pretax Payment × Tax Rate
Monthly Payment = Pretax + Tax
The money factor (also called lease factor or lease fee) is the lease equivalent of an interest rate. To convert: APR = Money Factor × 2,400. So a money factor of 0.00125 = 3% APR.
Key Leasing Concepts
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Residual Value
The higher the residual %, the lower your monthly payment. Vehicles with strong resale value (Toyota, Honda, BMW) tend to have better lease residuals.
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Negotiate the Cap Cost
Always negotiate the selling price (capitalized cost) before discussing lease terms. A $1,000 reduction in cap cost saves ~$27/month on a 36-month lease.
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Watch Mileage
Overage fees of $0.15–$0.30/mile can add hundreds at lease-end. If you drive more than the allowance, negotiate extra miles upfront — it's cheaper than paying overage.
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Money Down Warning
Large down payments on a lease can be risky — if the car is totaled, you lose that money. Keep drive-off costs minimal and let insurance handle the rest.
Frequently Asked Questions
What is a good money factor for a car lease?
A money factor of 0.00100 or lower (equivalent to 2.4% APR or less) is generally considered excellent. Average money factors range from 0.00100 to 0.00250. Always convert to APR to compare with financing rates: multiply by 2,400. Dealers sometimes mark up money factors — you can often negotiate it back down to the "buy rate."
What is a good residual value percentage?
A residual of 55%+ after 36 months is considered excellent, meaning the car retains over half its MSRP value. Most vehicles land between 45–60% for a 36-month lease. Luxury brands and vehicles known for holding their value (Toyota, Lexus, Honda) tend to have higher residuals, leading to lower monthly payments.
Can I put zero down on a car lease?
Yes — many leases can be structured with zero cap cost reduction (down payment). You'll still need to pay first month's payment, acquisition fee, registration, and dealer fees at signing (called drive-off costs). A zero-down lease isn't truly free, but it protects you from losing a large upfront payment if the car is totaled.
What happens at the end of a car lease?
At lease-end you have three options: (1) Return the vehicle — pay the disposition fee unless you lease/buy from the same brand. (2) Buy the vehicle at the pre-agreed residual value. (3) Trade it in — if the car's market value exceeds the residual, you have positive equity. You'll owe for excess miles and any excess wear and tear.
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