Enter your vehicle price, residual value, down payment, term, APR and tax rate to see your estimated monthly lease payment.
Estimates only.
A lease payment has two components: a depreciation charge and a finance charge. The depreciation charge covers the portion of the car's value you use during the lease. The finance charge is the cost of borrowing, calculated from the money factor.
The money factor is APR divided by 2,400. A lower residual means higher depreciation and a higher payment. A higher down payment (cap cost reduction) lowers your monthly payment but does not build equity. These are estimates only -- not financial advice. Confirm exact lease terms with the dealer before signing.
The money factor is the interest rate expressed in lease terms. Divide APR by 2,400 to convert. A money factor of 0.00208 equals roughly 5% APR.
Residual value is the predicted worth of the vehicle at lease end, set by the leasing company as a percentage of MSRP. A higher residual lowers your monthly payment because you are financing less depreciation.
Yes. A larger down payment (called a cap cost reduction) reduces the adjusted capitalized cost, which lowers both the depreciation and finance portions of each payment.
Leasing usually means lower monthly payments and the ability to drive a new car every few years. Buying builds equity and is cheaper long-term if you keep the vehicle. These are estimates only -- not financial or legal advice.
You return the vehicle, buy it out at the residual price, or lease a new car. Excess mileage and wear-and-tear charges may apply at return.
Most states tax each monthly lease payment rather than the full vehicle price. This calculator applies your tax rate to each payment. Rules vary by state -- confirm with the dealer.