Auto Lease Calculator
Calculate your monthly car lease payment including depreciation, finance charges, taxes, and fees. Compare lease vs buy options.
Understanding Auto Lease Payments
A car lease payment is made up of three main components: the depreciation fee, the finance fee (also called rent charge), and sales tax. Understanding how these work can help you negotiate a better deal.
How Lease Payments Are Calculated
Monthly Payment = Depreciation Fee + Finance Fee + Tax
Depreciation = (Net Cap Cost - Residual) ÷ Lease Term
Finance Fee = (Net Cap Cost + Residual) × Money Factor
Key Lease Terms Explained
| Term | Description |
|---|---|
| MSRP | Manufacturer's Suggested Retail Price - the sticker price |
| Cap Cost | Capitalized Cost - the negotiated price of the vehicle |
| Residual Value | The car's estimated value at lease end (% of MSRP) |
| Money Factor | The interest rate in lease terms (APR ÷ 2400) |
| Acquisition Fee | Bank fee for arranging the lease (typically $595-$1,095) |
Tips for Getting a Better Lease Deal
- Negotiate the cap cost: Just like buying, you can negotiate the price
- Look for high residual values: Higher residual = lower payments
- Compare money factors: Lower money factor = less interest
- Check for manufacturer incentives: Lease deals often have special rates
- Avoid excessive down payment: If the car is totaled, you lose that money
- Understand mileage limits: Exceeding them costs $0.15-$0.30 per mile
Lease vs Buy Considerations
| Factor | Lease | Buy |
|---|---|---|
| Monthly Payment | Lower | Higher |
| Ownership | No (return at end) | Yes (yours to keep) |
| Mileage | Limited (10-15k/year) | Unlimited |
| Customization | Not allowed | Your choice |
| Long-term Cost | Higher (continuous payments) | Lower (eventually paid off) |