Car Lease Calculator
Calculate monthly lease payments and total lease costs
Lease Details
Enter vehicle and lease information
Estimated value at lease end (typically 40-60%)
Lease Tips
• Negotiate the vehicle price, not just payment
• Watch for hidden fees and charges
• Understand mileage limits (typically 10-15k/year)
• Consider gap insurance for protection
• Check lease-end purchase option terms
About Car Leasing
Car leasing is essentially a long-term rental where you pay for the vehicle's depreciation during the lease term, plus interest and fees. At lease end, you return the vehicle or have the option to purchase it.
How Lease Payments Work:
Monthly payment = Depreciation + Finance Charge + Taxes/Fees
- Depreciation: (Capitalized Cost - Residual Value) / Term
- Finance Charge: (Capitalized Cost + Residual Value) × Money Factor
- Money Factor: Interest Rate / 2400 (to convert APR to monthly)
Key Terms:
- Capitalized Cost: The negotiated price (like purchase price)
- Residual Value: Predicted value at lease end
- Money Factor: The interest rate (divide by 2400 to get APR)
- Acquisition Fee: Leasing company's administrative charge
- Disposition Fee: Charged when returning vehicle