Car Lease Calculator
A lease is depreciation plus a rent charge plus tax. Put in the numbers from the quote sheet and see what the payment should be, what the whole lease costs, and whether financing the same car makes more sense.
The lease
Residual and money factor come from the lender's rate sheet; ask the dealer for both numbers. Typical 36-month residuals run 50–65% of MSRP.
Your lease payment
Lease vs buy same car, same months
| Lease | Finance (60 mo loan) |
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Questions people ask
How is a lease payment calculated?
Depreciation: net capitalized cost minus residual, divided by months. Rent charge: net cap cost plus residual, times the money factor. Tax is added to the payment in most states (a few tax the whole price up front).
What is a money factor?
The lease version of an interest rate. Money factor × 2,400 = APR. The two boxes above convert both ways. The APR ↔ Money Factor tool does it on its own.
Is leasing cheaper than buying?
Per month, usually. Over years, no. The table shows the lease against a 60-month loan at the APR you enter, including what the car would still be worth at the end of the lease term if you bought it.
Should I put money down on a lease?
As little as possible. It lowers the payment but you never get it back, and if the car is totaled early the money is usually gone. Negotiate the price, not the down payment.