Auto Lease Calculator

Lease payments have two components: depreciation (the value the car loses during the lease) and rent charge (interest). Depreciation = (Cap Cost - Residual Value) / Months. Rent Charge = (Cap Cost + Residual) × Money Factor. Add sales tax to get your total monthly payment.

The money factor is the lease equivalent of an interest rate. To convert to APR, multiply by 2,400. For example, a money factor of 0.00125 = 3% APR (0.00125 × 2,400). Lower money factors mean less interest cost. Good credit typically gets money factors under 0.002 (4.8% APR).

Residual value is the car's predicted worth at lease end, expressed as a percentage of MSRP. Higher residual = lower payments because you're paying for less depreciation. Honda and Toyota typically have 55-65% residuals, while luxury brands may be 50-58%. This is set by the leasing company.

Generally, putting money down on a lease isn't recommended because if the car is totaled, you lose that down payment. However, drive-off fees (first month, DMV, etc.) must be paid. Some prefer zero-down leases and invest the savings instead.

Excess mileage charges apply at lease-end, typically $0.15-$0.30 per mile over your allowance. If you drive 15,000 miles/year but lease for 12,000, you'll pay for 9,000 excess miles over 3 years. It's often cheaper to buy extra miles upfront than pay at lease end.