Auto Lease Calculator
Calculate your monthly car lease payment based on vehicle price, residual value, money factor, and lease term. Compare lease vs buy options.
Manufacturer's suggested retail price
Actual selling price you negotiate (typically 3-10% below MSRP)
Upfront payment to reduce monthly lease (optional, $0-$3,000 typical)
Value of your trade-in vehicle (optional)
Expected value at lease end (% of MSRP, typically 50-65%)
Lease interest rate (multiply by 2400 for APR equivalent)
Length of lease (common: 24, 36, 39 months)
Local sales tax rate (varies by state)
Bank/dealer fee to process lease (typically $395-$995)
Should I lease or buy a car?
Lease if: You want lower monthly payments, like driving new cars every 2-3 years, drive under 12,000-15,000 miles/year, and don't want maintenance worries. Buy if: You drive a lot, want to own the car, plan to keep it 5+ years, or want to customize it. Leasing costs less monthly but you never own the car. Buying costs more upfront but builds equity.
What is a money factor and how does it work?
Money factor is the lease equivalent of interest rate. To convert to APR: multiply by 2,400. Example: 0.00125 money factor = 3% APR. Lower money factors mean lower lease payments. Good credit gets better money factors (0.001-0.002). Poor credit might see 0.003-0.005 or higher. Always ask for the money factor when negotiating a lease.
What happens at the end of a car lease?
You have 3 options: 1) Return the car (ensure it's under mileage limit with no excess wear), 2) Buy it for the residual value (good if market value > residual), or 3) Lease a new car. Excess mileage fees are typically $0.15-$0.30 per mile. Excess wear charges apply for damage beyond normal use. Plan ahead to avoid surprise fees.
Can I negotiate a car lease?
Yes! Negotiate: 1) Selling price (not just monthly payment) - aim for invoice price or lower, 2) Money factor - compare with manufacturer rates, 3) Residual value - usually non-negotiable but ask, 4) Down payment - lower is better for leases, 5) Fees - doc fees, acquisition fees. Never focus only on monthly payment - dealers can manipulate other variables.