Auto Lease Calculator
Lease Details
Lease Results
| Estimated Monthly Payment | — |
|---|---|
| Monthly Depreciation Fee | — |
| Monthly Rent Charge (Interest) | — |
| Monthly Sales Tax | — |
| Total Cost of Lease (including Down Payment & Trade) | — |
Leasing vs. Buying Comparison
Side-by-side cost breakdown assuming purchasing the vehicle with an auto loan over the same term and rate.
| Cost Component | Lease Vehicle | Buy Vehicle (Loan) |
|---|---|---|
| Monthly Payment | — | — |
| Upfront Cost (Down payment + Trade-in) | — | — |
| Total Term Payments (Monthly Pay × Term) | — | — |
| Vehicle Value at End of Term | $0.00 (Owned by lessor) | — (Residual Value) |
| Net Ownership Cost (Payments - End Value) | — | — |
Leasing vs. Buying a Car
Car leasing works like a long-term rental contract. You pay the dealer for the vehicle's depreciation during the lease period, plus interest (known as the rent charge). At the end of the term, you return the vehicle. Buying, on the other hand, builds equity: once the loan is paid off, the vehicle is yours to keep, sell, or trade.
Understanding Lease Cost Formulas
Auto lease calculations are standardized:
- Money Factor: Expresses the interest rate of the lease. Multiply the Money Factor by 2,400 to find the equivalent Annual Percentage Rate (APR). For example, a money factor of 0.00208 corresponds to an APR of 5.0%.
- Depreciation Fee: The vehicle value you "use up" over the lease term:
Depreciation = (Net Capitalized Cost - Residual Value) / Lease Term
Net Capitalized Cost is the Auto Price minus down payments and trade-in credits. - Rent Charge: The finance cost, calculated on the combined capitalized cost and residual value:
Rent Charge = (Net Capitalized Cost + Residual Value) × Money Factor - Sales Tax: In most states, sales tax is calculated on the monthly payment (depreciation fee + rent charge) rather than the total purchase price of the vehicle.
Disclaimer. This calculator is for informational purposes only. Car lease deals often include upfront disposition, acquisition, and security fees. Residual values and lease interest rates are set by the leasing bank and may not be negotiable.