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Professional Car Lease Calculator

Vehicle Price ($)

Down Payment ($)

Trade-in Value ($)

Residual Value ($)

Lease Term (Months) 24 Months 36 Months 48 Months 60 Months

Interest Rate (APR %)

Sales Tax (%)

Estimated Payment: $0.00

Monthly Depreciation:

Monthly Rent Charge:

Base Payment:

Monthly Tax:

How to Use the Car Lease Calculator

Calculating a car lease payment is more complex than a standard auto loan. While a loan pays down the entire value of the vehicle plus interest, a lease only charges you for the depreciation that occurs during the time you drive the car. This calculator breaks down the three core components of your payment: depreciation, rent charge (interest), and taxes.

Understanding the Key Lease Variables

Gross Capitalized Cost: This is the negotiated price of the vehicle. Just like buying a car, you should negotiate the MSRP down before signing a lease.
Residual Value: This is the estimated value of the car at the end of the lease term. It is set by the leasing company. A higher residual value usually results in a lower monthly payment.
Money Factor: This is essentially the interest rate expressed in a different format. To convert Money Factor to APR, multiply it by 2,400. (e.g., a Money Factor of 0.0025 equals a 6% APR).
Lease Term: Most leases run for 24, 36, or 48 months. Shorter leases often have higher payments but keep the vehicle under warranty for the duration.

Lease Calculation Example

Imagine you are leasing a car with the following terms:

Negotiated Price: $40,000
Down Payment: $4,000
Residual Value: $22,000
Term: 36 Months
APR: 4.8% (Money Factor: 0.002)

Step 1: Depreciation. ($40,000 – $4,000) – $22,000 = $14,000. Divided by 36 months = $388.89/mo.

Step 2: Rent Charge. ($36,000 + $22,000) * 0.002 = $116.00/mo.

Step 3: Total. $388.89 + $116.00 = $504.89 (plus local sales tax).

Expert Tips for Lowering Your Payment

To get the best deal, focus on three things: negotiating a lower "Cap Cost" (the car's price), finding vehicles with high residual values (they hold their value better), and checking your credit score to ensure you qualify for the lowest possible Money Factor. Be wary of "Zero Down" leases, as they will significantly increase your monthly payment even though they save you money upfront.