Car Lease Calculator

- May 12, 2025
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Calculate monthly payments and total cost for car leases based on vehicle price, residual value, money factor, and other lease terms.

Vehicle Information

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Lease Terms

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Additional Costs

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Advanced Options

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About Car Leasing

Car leasing is a long-term rental agreement that allows you to drive a vehicle for a specified period, typically 2-4 years, while making monthly payments. Unlike buying, you don't own the vehicle at the end of the lease unless you choose to purchase it for the predetermined residual value.

Key Lease Terms
  • MSRP (Manufacturer's Suggested Retail Price): The sticker price of the vehicle.
  • Negotiated Price: The price you negotiate with the dealer, typically lower than MSRP.
  • Residual Value: The estimated value of the vehicle at the end of the lease term.
  • Money Factor: Similar to an interest rate, used to calculate the finance charge.
  • Capitalised Cost: The amount being financed in the lease (negotiated price minus down payment and other reductions).
  • Lease Term: The duration of the lease, typically expressed in months.
  • Disposition Fee: Fee charged when you return the vehicle at lease end.
  • Acquisition Fee: Administrative fee charged at the beginning of the lease.
Lease Payment Formula

Monthly lease payments consist of two main components:

  1. Monthly Depreciation: (Capitalised Cost - Residual Value) ÷ Lease Term in Months
  2. Monthly Finance Charge: (Capitalised Cost + Residual Value) × Money Factor

The total monthly payment is the sum of these two components plus any applicable taxes.

Money Factor and APR

The money factor is similar to an interest rate but is expressed differently:

  • To convert APR to money factor: APR ÷ 2400
  • To convert money factor to APR: Money Factor × 2400

For example, a money factor of 0.00125 is equivalent to an APR of approximately 3%.

Understanding the Car Lease Calculator

The Car Lease Calculator is a handy tool that helps you figure out your monthly payments when leasing a car. It takes into account various factors, like the vehicle's price, how much you negotiate, and the lease terms. You can enter specific details, and it will show you the total costs, helping you make informed decisions about your lease.

Input Vehicle Information

To get started, you'll need to enter some basic information about the vehicle you wish to lease. This includes:

  • Vehicle MSRP: This is the Manufacturer's Suggested Retail Price.
  • Negotiated Price: The price you agree upon with the dealer, which is usually less than the MSRP.

Providing accurate figures ensures that the calculator produces reliable results tailored to your situation.

Lease Term and Mileage Options

The lease term and annual mileage play a big role in your lease calculations. You can choose how long you want to lease the car, typically between 12 to 60 months. Additionally, the calculator allows you to specify how many miles you plan to drive annually, which can affect the residual value of the car at the end of the lease.

Setting Residual Value and Money Factor

Another important aspect of leasing is understanding residual value and money factor. The calculator lets you choose whether to enter a residual value as a percentage or a fixed amount. Additionally, you can provide the money factor, which is similar to an interest rate, helping to determine your Finance charges. You can even switch between money factor and APR to suit your preferences.

Calculating Additional Costs

Aside from the basic lease payments, many Other costs are involved in leasing a car. The calculator allows you to include:

  • Down payments
  • Sales tax rates
  • Any trade-in values
  • Additional fees and rebates

These inputs ensure you get a complete picture of what your lease will really cost you.

Advanced Features for Detailed Analysis

The Car Lease Calculator includes advanced options for those wanting a deeper dive into their lease agreements. You can add acquisition fees, disposition fees, and documentation fees. There's even a feature to show detailed calculation steps, breaking down how each part of your payment is determined. Such transparency can help demystify the leasing process.

Results of Your Lease Calculation

Once you’ve entered all necessary information, the calculator provides a comprehensive summary of your lease costs. It shows the monthly payment amount, total cost for the lease, and costs per mile based on allowed mileage. This clear summary helps you understand exactly what to expect financially.

Learn More About Car Leasing

Finally, the calculator isn't just about numbers. It also offers a section explaining key leasing terms and concepts. You can learn about aspects like depreciation, capitalised costs, and the significance of various fees, making it easier to navigate the leasing landscape.