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Auto Lease Calculator

Calculate auto lease payments with money factor, residual value, and total cost. Compare leasing vs. buying.

Lease Results

Monthly Lease Payment $0.00
Total Lease Cost $0.00
Residual Value at End $0.00

How to Use the Auto Lease Calculator

  1. Enter the vehicle MSRP (sticker price).
  2. Enter your negotiated price (if different from MSRP).
  3. Add down payment and trade-in value.
  4. Enter residual value percentage (typically 50-60%).
  5. Enter the money factor (ask the dealer or calculate from APR).
  6. Select lease term and click "Calculate Lease".

Frequently Asked Questions

What is money factor?

Money factor is the lease equivalent of interest rate. To convert APR to money factor, divide APR by 2400. For example, 6% APR = 0.0025 money factor. Dealers often use money factor instead of APR in lease calculations.

What is residual value?

Residual value is the estimated value of the vehicle at the end of the lease. It's expressed as a percentage of MSRP. Higher residual values typically mean lower monthly payments but may have higher upfront costs.

Should I lease or buy?

Leasing may be better if you want lower monthly payments, like to change cars every few years, or want to avoid depreciation risk. Buying may be better if you want to own the car long-term, drive high mileage, or want to customize the vehicle.

What happens at the end of a lease?

At lease end, you can return the car, buy it for the residual value, or trade it in for a new lease. If the car is worth more than the residual value, you may have equity. If it's worth less, you may owe additional fees.

Can I negotiate a lease?

Yes, you can negotiate the vehicle price (capitalized cost), money factor (interest rate), and fees. Negotiating the vehicle price has the biggest impact on monthly payments. Always negotiate the price first, then discuss lease terms.