Our free calculator helps you estimate and compare car lease payments with precision. Understand the full scope of your leasing costs, explore different scenarios, and make confident, informed decisions about your next vehicle lease agreement.
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Car leasing represents a flexible alternative to purchasing a vehicle, allowing you to drive a new car for a predetermined period, typically 24 to 48 months, with substantially lower monthly payments compared to traditional auto loans.
When you lease a vehicle, you're primarily paying for the car's anticipated depreciation during your lease term, plus interest charges and various fees. By understanding these fundamental components, you can negotiate more favorable lease terms and potentially save thousands over the life of your agreement.
Note: All calculations provided are estimates based on industry standards. Actual lease payments may vary based on dealer-specific terms, regional taxes, credit score considerations, and additional fees not accounted for in this calculator.
| Component | Description |
|---|---|
| Capitalized Cost | The negotiated vehicle price plus any additional fees, taxes, and optional add-ons. This is the total amount being financed through the lease. |
| Residual Value | The projected value of the vehicle at the end of the lease term, typically expressed as a percentage of the MSRP. Higher residual values generally result in lower monthly payments. |
| Money Factor | The interest rate equivalent for leases, expressed as a decimal. To convert to APR, multiply by 2400. A lower money factor means lower finance charges. |
| Lease Term | The duration of your lease agreement, typically ranging from 24 to 48 months. Shorter terms often mean higher payments but less overall interest paid. |
| Down Payment | The initial payment made at lease signing that reduces the capitalized cost. A larger down payment results in lower monthly payments. |
Leasing typically offers lower monthly payments and the opportunity to drive a new vehicle every few years, but purchasing builds equity and provides long-term value. Consider your financial goals, driving habits, and preference for vehicle ownership when deciding between these options.
Our Car Lease Calculator helps you estimate monthly lease payments based on the vehicle price, down payment, lease term, and other factors. It helps you make informed decisions about leasing a vehicle.
Enter the vehicle price, down payment, lease term (months), interest rate (money factor), and residual value. The calculator will determine your estimated monthly lease payment.
The residual value is the estimated value of the vehicle at the end of the lease term. It's usually expressed as a percentage of the original vehicle price and is set by the leasing company.
A money factor is the lease equivalent of an interest rate. To convert a money factor to an APR, multiply it by 2400. For example, a money factor of 0.00125 equals a 3% APR.
Monthly lease payments are affected by the vehicle price, down payment, lease term, money factor (interest rate), residual value, and any additional fees or taxes.
The choice between leasing and buying depends on your personal circumstances, including financial situation, driving habits, and long-term plans. Leasing typically offers lower monthly payments but no ownership equity.