Car Lease Calculator
Calculate your monthly car lease payment and total lease cost. Compare lease vs buy options and understand all lease components.
How to Use This Car Lease Calculator
- Enter the vehicle's negotiated price (MSRP or selling price).
- Enter your down payment and the estimated residual value at lease end.
- Enter the money factor (from the dealer) and lease term in months.
- Click "Calculate Lease Payment" to see your monthly payment breakdown.
Lease Formula
Examples
$35,000 car, $3,000 down, $20,000 residual, MF 0.00125:
Depreciation = ($35,000 − $3,000 − $20,000) / 36 = $333.33/mo
Finance Fee = ($32,000 + $20,000) × 0.00125 = $65.00/mo
Monthly = $333.33 + $65.00 = $398.33 + tax
Frequently Asked Questions
What is a money factor?
The money factor is the interest rate on a lease, expressed as a small decimal. To convert to APR, multiply by 2,400. For example, a money factor of 0.00125 equals an APR of 3%. Lower money factors mean lower finance charges.
Should I lease or buy a car?
Leasing is better if you want lower monthly payments, drive new cars frequently, and don't drive many miles. Buying is better if you keep cars long-term, drive heavily, or want to build equity. Use our calculator to compare total costs.