Vehicle Price
You saved $3,000 (6.7% off MSRP)
Lease Terms
= 3.00% APR
Fees & Credits
Mileage & Excess Charges
Allowed mileage: 36,000 miles over 36 months (12,000/year)
Monthly Payment Breakdown
Lease Calculation Details
Total Cost Summary
| Cost Component | Amount |
|---|---|
| Monthly Payments (36 × $594) | $21,392 |
| Upfront Costs | $895 |
| Total Lease Cost | $22,287 |
| Cost Per Mile | $0.62/mi |
End of Lease Options
Return Vehicle
Return the car, pay any excess mileage/wear fees, walk away
Purchase Vehicle
Buy at residual value: $28,058 (+ tax)
Lease New Vehicle
Start a new lease, possibly with loyalty incentives
Excess mileage: $0 per mile over 36,000 total miles
Lease Payment Summary
Monthly Payment
$594
Including tax
Total Lease Cost
$22,287
Over 36 months
What if the residual value changed?
Higher residual = lower payments (less depreciation to finance)
Your Lease Insights
1 insight based on your inputs
Total Cost Perspective
You'll pay 50% of MSRP to lease for 36 months—then return the car.
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Frequently Asked Questions
How is a car lease payment calculated?
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.
What is the money factor?
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).
What is residual value?
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.
Should I put money down on a lease?
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.
What happens if I exceed my mileage allowance?
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.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).