Car Lease Calculator
Break down any lease offer
Estimated monthly payment
$428.34
- Adjusted cap cost
- $31,000
- Residual value
- $20,300
- Money factor
- 0.00208
- Depreciation / month
- $297.22
- Finance charge / month
- $106.88
- Total of payments + down
- $17,420
Read a Lease Deal Like a Dealer
A lease payment looks simple, but it's built from a handful of numbers the dealer doesn't always volunteer: the capitalized cost, the residual value and the money factor. Ask for all three, enter them above, and you can check the payment you're quoted and see exactly where your money goes.
Car Lease Terms
- Capitalized cost
- The price of the car in the lease. Negotiate it just as you would a purchase price.
- Cap cost reduction
- Your down payment, trade-in and rebates, which lower the capitalized cost.
- Residual value
- The car's expected value at the end of the lease, set by the leasing company as a percentage of MSRP.
- Money factor
- The lease's interest rate in decimal form. Multiply it by 2,400 to get the rough APR.
- Depreciation fee
- The part of each payment that covers the value the car loses during the lease.
- Acquisition fee
- A bank fee for setting up the lease, often a few hundred dollars.
- Disposition fee
- A fee charged when you return the car at the end of the lease.
Frequently Asked Questions About Car Leases
How is a lease payment calculated?
A lease payment has two parts: a depreciation fee, which is the capitalized cost minus the residual value divided by the number of months, and a finance charge, which is the capitalized cost plus the residual value multiplied by the money factor. Sales tax is then added in most states.
What is a good money factor?
Multiply the money factor by 2,400 to compare it with a loan APR. A money factor of 0.00200 is roughly a 4.8% APR. The best rates usually go to buyers with excellent credit.
Is it better to lease or buy?
Leasing gives a lower payment and a newer car every few years, but you own nothing at the end and pay for extra miles and wear. Buying costs more per month but is usually cheaper if you keep the car for many years.
Should I put money down on a lease?
Many experts advise keeping the down payment small. If the car is stolen or totaled early in the lease, gap insurance pays off the lease, but your down payment is usually lost.
Can I negotiate a lease?
Yes. The capitalized cost is negotiable just like a purchase price, and dealers sometimes mark up the money factor. Ask for the buy rate and the residual value in writing.
Buying out your lease, or a used car?
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