Car Lease Calculator

Leasing typically offers lower monthly payments, warranty coverage throughout the lease term, and the ability to drive a newer car with latest features. You also avoid depreciation concerns and can upgrade to a new vehicle every few years.

Monthly lease payment is based on the vehicle's depreciation (auto price minus residual value), finance charges on the lease, and sales tax. The payment covers the vehicle's depreciation during your lease term plus interest charges.

Residual value is the vehicle's estimated worth at the end of your lease. A higher residual value means lower depreciation, which results in lower monthly payments. Luxury vehicles often have better residual values.

Interest rate is expressed as an annual percentage, while money factor is a decimal used specifically in leasing calculations. To convert money factor to interest rate, multiply by 2400. For example, a 0.002 money factor equals approximately 4.8% interest rate.

While a down payment reduces monthly payments, it's often not recommended for leases. If the car is stolen or totaled early in the lease, you may lose your down payment. Consider capitalized cost reduction instead.

Yes, you can often negotiate the vehicle's selling price (capitalized cost), money factor/interest rate, and sometimes the residual value. Research the vehicle's invoice price and current incentives before negotiating.

Most leases include a mileage allowance (typically 10,000-15,000 miles per year). Exceeding this limit results in excess mileage charges, usually between $0.15-$0.30 per mile. Consider purchasing additional miles upfront if you expect to exceed the limit.