Subaru Lease Calculator

Subaru Lease Payment Calculator

Use this calculator to estimate your monthly lease payment for a new Subaru. Understanding the various components of a lease can help you negotiate a better deal.

Understanding Your Subaru Lease

Leasing a Subaru can be an attractive option for many drivers, offering lower monthly payments compared to financing a purchase, and the flexibility to drive a new vehicle every few years. This calculator helps you break down the key components that determine your monthly lease payment.

Key Lease Terms Explained:

• Subaru MSRP (Manufacturer's Suggested Retail Price): This is the sticker price of the vehicle. While it's a starting point, your actual lease is based on the negotiated price.
• Negotiated Price / Capitalized Cost: This is the agreed-upon selling price of the Subaru, similar to the purchase price if you were buying. It's the foundation for your lease calculations. A lower negotiated price directly reduces your monthly payment.
• Residual Value Percentage: This is the estimated value of the Subaru at the end of the lease term, expressed as a percentage of the MSRP. A higher residual value means you're depreciating less of the car's value over the lease, resulting in lower monthly payments. Subaru models often hold their value well, which can lead to favorable residual values.
• Lease Term (Months): The duration of your lease agreement, typically 24, 36, or 48 months.
• Money Factor: This is the lease equivalent of an interest rate. It's a small decimal number (e.g., 0.00150). To convert it to an approximate annual percentage rate (APR), multiply it by 2400 (0.00150 * 2400 = 3.6% APR). A lower money factor means lower finance charges.
• Trade-in Value: If you have a vehicle to trade in, its value can be applied to reduce your capitalized cost, effectively lowering your monthly payments.
• Down Payment / Capitalized Cost Reduction: An upfront payment made at the beginning of the lease to reduce the capitalized cost. While it lowers monthly payments, it's money you won't get back if the car is totaled or stolen early in the lease.
• Acquisition Fee: A fee charged by the leasing company for setting up the lease. This is typically a fixed amount.
• Documentation Fee: A fee charged by the dealership for processing paperwork.
• Sales Tax Rate (%): Sales tax is applied to your lease payment. The way sales tax is calculated on a lease varies by state; some tax the total capitalized cost upfront, while others tax the monthly payment. This calculator assumes tax is applied to the monthly payment.

How the Calculator Works:

The calculator uses standard lease formulas to determine your monthly payment:

1. Residual Value (dollar amount): Calculated by multiplying the Subaru's MSRP by the Residual Value Percentage.
2. Adjusted Capitalized Cost: This is your Negotiated Price minus any Trade-in Value and Down Payment, plus any Acquisition and Documentation Fees.
3. Depreciation Portion: This is the difference between the Adjusted Capitalized Cost and the Residual Value, divided by the Lease Term. This represents how much the car depreciates each month.
4. Finance Portion: This is calculated by adding the Adjusted Capitalized Cost and the Residual Value, then multiplying by the Money Factor. This represents the monthly finance charge.
5. Base Monthly Payment: The sum of the Depreciation Portion and the Finance Portion.
6. Total Monthly Payment: The Base Monthly Payment plus any applicable Sales Tax.

Example Subaru Lease Calculation:

Let's consider a Subaru Forester with an MSRP of $30,000 and a negotiated price of $28,500. Assume a 36-month lease, a 60% residual value, and a money factor of 0.00150. We'll include a $595 acquisition fee, $150 documentation fee, no trade-in or down payment, and a 7% sales tax rate.

• MSRP: $30,000
• Negotiated Price: $28,500
• Residual Value Percentage: 60%
• Lease Term: 36 months
• Money Factor: 0.00150
• Trade-in Value: $0
• Down Payment: $0
• Acquisition Fee: $595
• Documentation Fee: $150
• Sales Tax Rate: 7%

Using these values, the calculator would determine:

• Residual Value: $30,000 * 0.60 = $18,000
• Adjusted Capitalized Cost: $28,500 – $0 – $0 + $595 + $150 = $29,245
• Depreciation Portion: ($29,245 – $18,000) / 36 = $11,245 / 36 = $312.36
• Finance Portion: ($29,245 + $18,000) * 0.00150 = $47,245 * 0.00150 = $70.87
• Base Monthly Payment: $312.36 + $70.87 = $383.23
• Sales Tax: $383.23 * 0.07 = $26.83
• Total Monthly Payment: $383.23 + $26.83 = $410.06

This example demonstrates how each factor contributes to your final monthly payment. Always confirm all figures with your Subaru dealership before signing a lease agreement.