Auto Lease Calculator
Estimate your monthly lease payment including depreciation, finance charges, and sales tax
Leasing means paying for the vehicle's depreciation during your lease term, plus finance charges and tax. Formula: depreciation = (cap cost - residual) / term; finance = (cap cost + residual) x money factor; monthly = (depreciation + finance) x (1 + tax rate).
Lease Details
Frequently Asked Questions
Is leasing cheaper than buying?
Leasing has lower monthly payments because you only pay depreciation. You don't build equity and may face mileage limits (10K-15K mi/yr).
What is a money factor?
It is the lease interest rate as a small decimal. Multiply by 2400 to get APR. Example: 0.00125 x 2400 = 3% APR.
What if I go over mileage?
Most leases charge $0.15-0.25 per mile over. Calculate expected mileage before signing.
Can I negotiate the residual?
Residual values are set by the manufacturer and are non-negotiable. But cap cost and money factor can be negotiated.