How to use the Auto Lease Calculator
- 1 Enter the negotiated price (capitalized cost).
- 2 Enter your down payment.
- 3 Enter the residual percentage and money factor or APR.
- 4 Choose the term and enter your sales tax rate.
Worked example
A $38,000 negotiated price with $2,000 down, a 58% residual, a 0.0025 money factor and 7% sales tax over 36 months. Depreciation is about $388 and the rent charge $145, so the payment is about $533 before tax and about $570 a month with tax. Total cost is about $22,526.
Features
Dealer formula
Depreciation plus rent charge, plus tax.
Money factor or APR
Enter either; APR is converted for you.
Total cost
All payments plus the down payment.
When to use it
Dealer quotes
Check the numbers on a lease offer.
Lease or buy
Compare with an auto loan.
Negotiating
See how a lower price changes the payment.
Term choice
Compare 24, 36 and 48 months.
Frequently asked questions
How is a lease payment calculated?
Depreciation (cap cost minus residual, divided by months) plus rent charge ((cap cost plus residual) times money factor), plus sales tax.
What is a money factor?
The lease's interest rate in decimal form. Multiply by 2,400 for an approximate APR, so 0.0025 is about 6%.
What is the residual value?
The car's projected value at lease end, set by the leasing company as a percentage of MSRP.
Is sales tax charged on the whole car?
Most states tax each monthly payment, but a few tax the full price upfront.
Should I put money down on a lease?
Many experts advise little or none, because a down payment can be lost if the car is totaled.
What are mileage limits?
Usually 10,000 to 15,000 miles a year, with fees of about 15 to 25 cents per extra mile.
Can I buy the car at the end?
Yes, for the residual value plus any fees.
Can I negotiate a lease?
Yes. Negotiate the price, ask for the buy rate money factor and check the residual and fees.
What fees come with a lease?
An acquisition fee, possibly a security deposit, registration and taxes at signing, and a disposition fee at the end.
What is gap insurance?
Coverage that pays the difference between what you owe and the car's value if it is totaled. Many leases include it.
Can I end a lease early?
Usually only by paying the remaining payments and fees, or by transferring the lease.
Does leasing affect credit?
A lease appears on your credit report like a loan.
What is a good money factor?
With excellent credit, many leases offer money factors around 0.0015 to 0.0030, which is roughly 3.6% to 7.2% APR.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated