Calculators
Lease Calculator
Calculate your monthly car or equipment lease payment with our free lease calculator. Includes residual value, money factor, taxes, and fees for accurate lease cost estimation.
Use Lease Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
Your results will appear here.
About this tool
Calculate accurate monthly lease payments for vehicles and equipment with our comprehensive lease calculator. Leasing can offer lower monthly payments compared to buying, making it popular for cars, business equipment, and technology. Our calculator factors in vehicle price, residual value, money factor (interest rate), taxes, fees, and down payment to show your true monthly cost.
Understanding lease costs helps you negotiate better terms and decide if leasing is right for you. Unlike simple payment estimators, our calculator breaks down your payment into depreciation cost and finance charges, showing exactly where your money goes. The residual value (what the vehicle is worth at lease end) significantly impacts your monthly payment - higher residual means lower payments.
Perfect for comparing lease offers from different dealers, evaluating lease vs buy decisions, and understanding how down payments affect monthly costs. The money factor converts to APR (multiply by 2,400) so you can compare lease rates to auto loan rates. All calculations follow industry-standard formulas used by automotive and equipment leasing companies.
Your financial information stays completely private - all calculations happen in your browser with no data sent to servers. Use the calculator as many times as needed to find the best lease terms. Works on all devices and can be used offline after the first visit.
Usage examples
New Car Lease
$35,000 car, 55% residual, 0.00125 money factor for 36 months
Monthly Payment: $437, Total: $15,732. Depreciation: $327/month, Finance: $110/month. Money factor 0.00125 = 3% APR equivalent.
Luxury Vehicle Lease
$60,000 car, 58% residual, 0.00200 money factor, $3,000 down
Monthly Payment: $647, Total: $26,292. Down payment reduces monthly by $83. Higher residual = lower depreciation cost.
Equipment Lease Comparison
$100,000 equipment: 50% residual vs 40% residual
50% residual: $1,595/mo. 40% residual: $1,992/mo. 10% residual difference = $397/month savings or $14,292 over 3 years.
Low Money Factor Benefit
$40,000 car: 0.00100 vs 0.00200 money factor
At 0.00100: $537/mo. At 0.00200: $593/mo. Better credit/rate saves $56/month or $2,016 over 36 months.
Impact of Down Payment
$30,000 car lease: $0 down vs $3,000 down
$0 down: $429/mo. $3,000 down: $346/mo. Down payment reduces monthly by $83 but requires cash upfront - consider if worth it.
How to use
- Enter the vehicle or equipment price (MSRP or negotiated price)
- Enter the residual value percentage (typically 50-60% for 3-year car leases)
- Enter the money factor (similar to interest rate, provided by dealer)
- Enter any down payment, taxes, and fees
- Enter the lease term in months (typically 24, 36, or 48 months)
- Click "Run Tool" to calculate your monthly lease payment
- View payment breakdown including depreciation and finance charges
Benefits
- Calculate accurate monthly lease payments for cars and equipment
- See breakdown of depreciation vs finance charges
- Factor in down payment, taxes, and fees
- Convert money factor to APR equivalent for easy comparison
- Compare different residual values and their impact
- Evaluate lease vs buy scenarios
- Understand true cost of leasing over the term
- No registration or personal information required
- 100% private - calculations done in your browser
- Works on all devices - phone, tablet, desktop
- Free forever with no premium features
- Based on industry-standard lease calculation formulas
FAQs
How is a lease payment calculated?
Lease payment has two components: 1) Depreciation charge = (Vehicle Price - Residual Value) / Lease Term, and 2) Finance charge = (Vehicle Price + Residual Value) × Money Factor. Total monthly payment = Depreciation + Finance charge + taxes/fees. This differs from a loan where you pay principal plus interest on declining balance.
What is residual value and how does it affect my payment?
Residual value is what the vehicle/equipment is worth at lease end, expressed as a percentage of original price. Higher residual = lower depreciation = lower monthly payment. A $40,000 car with 60% residual means $24,000 end value, so you only pay for $16,000 depreciation. Car manufacturers set residuals based on predicted future value.
What is money factor and how does it relate to APR?
Money factor is the lease equivalent of an interest rate. To convert to APR, multiply by 2,400. For example, money factor 0.00125 × 2,400 = 3% APR. Dealers often quote money factor because the small decimal seems insignificant, but always convert to APR to compare with auto loan rates. Money factor is based on your credit score.
Should I make a down payment on a lease?
Down payments (cap cost reduction) lower monthly payments but don't reduce total cost much - just spread it differently. Many experts advise against large down payments on leases because if the vehicle is totaled or stolen early in the lease, insurance may not cover the down payment and you lose that money. Small down payments to cover fees are usually fine.
Is leasing or buying better financially?
Leasing offers lower monthly payments and the ability to drive new vehicles every few years, but you never own the vehicle and must stay under mileage limits. Buying costs more monthly but builds equity - after paying off the loan, you own an asset. Leasing is better if you want new vehicles often and drive under 12-15k miles/year. Buying is better long-term if you keep vehicles 7+ years.
What are typical lease terms and mileage limits?
Car leases are typically 24, 36, or 48 months with 10,000-15,000 annual mileage limits. Standard is 12,000 miles/year. Exceeding the limit costs $0.15-$0.30 per mile - expensive if you drive 20,000 miles/year. Equipment leases vary widely. Shorter terms have higher payments but lower total cost. Choose term based on how long you need the asset and typical usage.
Can I negotiate a lease like I can a purchase?
Yes! You can negotiate the vehicle price (capitalized cost), money factor (sometimes), and fees. Dealers profit from leases just like sales. Lower the capitalized cost to reduce payments. Also negotiate the trade-in value and any dealer fees. The residual value is set by the manufacturer and typically not negotiable. Always get quotes from multiple dealers.
What fees should I expect when leasing?
Common lease fees include acquisition fee ($595-$995), disposition fee at lease end ($300-$500), DMV/registration, doc fees, and sometimes security deposit (often waived with good credit). Sales tax applies monthly in most states. Ask for a full fee breakdown before signing. Some fees are negotiable, especially doc fees and acquisition fees.
What is capitalized cost reduction?
Capitalized cost reduction (cap cost reduction) is any down payment, trade-in value, or rebates that reduce the vehicle's lease price upfront. It directly lowers the depreciation amount you're paying for. For example, a $3,000 cap cost reduction on a $30,000 car means you're leasing it as if it costs $27,000, reducing monthly payments by approximately $83 over 36 months.
Can I end a lease early?
Yes, but it's usually expensive. You typically must pay the remaining payments, early termination fee, and the difference between the residual value and actual market value. It can cost thousands. Better options: transfer the lease to someone else (if allowed), buy out the lease then sell the vehicle, or wait until near lease end. Some manufacturers offer pull-ahead programs to end a few months early.
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