Lease Calculator – Free Online Tool

A Lease Calculator provides an indication of how much you may have to pay each month towards leasing a vehicle. Whether you\'re looking to lease a brand new Sedan, SUV, Truck, or Electric Car within the United States this is a useful tool.

When leasing a vehicle you are entitled to drive and use a vehicle as oppose to purchase it. Monthly lease payments are generally dependant on how much the vehicle costs, how much it will depreciate, residual value, lease term, money factor and any initial payment made.

This tool makes it easier to calculate the approximate monthly payments for vehicles. It can help determine how different cars/lease agreements and contracts would affect your payments. It can also help you to understand how a larger deposit and/or lower purchase price will affect your budgeting.

You can use this to understand what you may pay for a lease. Here\'s how to use the calculator:

Instructions For Using Lease Calculator

This is an easy to use Lease Calculator, just fill out your vehicle details and lease details below.

1. Vehicle Price – The negotiated price of the vehicle or Capsule Price.

2. Initial Payment – Any amount you\'re willing to pay on the vehicle upfront such as a Capsule Price reduction and/or initial payment.

3. Residual Value – Insert the approximate value of the vehicle at the end of the lease. You can use a percentage of it\'s Original MSRP, or amount given by the leasing company.

4. Money Factor – Insert the money factor from your lease offer.

5. Lease Term – Insert your lease term. e.g 24, 36, 48.

6. Extra Charges – Insert any applicable acquisition fees, dealership fees or fees.

7. Calculate – Click calculate to view your monthly payment.

Review what you can do by adjusting your payable inputs.

Lease Calculator Equation

There are mostly two elements to what you\'ll pay when leasing a vehicle. Depreciation Charges, Finance Charges. Also Sales Tax and extra charges.

1. Monthly Depreciation Charges

This will tell you how much of the value of the vehicle you are paying for.

Depreciation =

(Adjusted Capsule Price - Residual Value)/LEASE TERM

2. Finance Charges

This tells you how much you will be paying for financing.

Finance Charge =

(Adjusted Capsule Price + Residual Value)_MONEY FACTOR

3. Monthly Lease Payment

Monthly Payment =

DEPRECIATION CHARGE + FINANCE CHARGE

+ Sales Tax (if applicable).

Where:

Adjusted Capsule Price – The amount you\'re paying for the vehicle, including Capsule fees and other amounts paid off. Minus Capsule Price reductions.

Residual Value – An approximate value of the vehicle at the end of the lease.

LEASE TERM – How many months the lease runs.

MONEY FACTOR – The interest rate (decimal) used by the leasing company.

Money Factor x 2400 = Approximate APR.

Example

Say we wanted to lease a new vehicle. And we have the following details.

Lease Details Amount

Vehicle Price $40,000

Initial Payment $3000

Residual Value $24,000

Money Factor 0.00200

LEASE TERM 36 Months

Sales Tax Exempt

Assume there are no Capsule Fees.

1. Adjusted Capsule Price

$40,000 − $3000 = $37,000

2. Monthly Depreciation

($37,000 − $24000)/36 = $361.11

3. Monthly Finance Charge

($37,000 + $24000) x 0.00200 = $122.00

4. Lease Payment

$361.11 + $122.00 = $483.11

Based on these calculations your monthly payments will be approx. $483.11.

Please note your quote may vary between dealerships. Depending on the Taxes, Fees, Incentive offered and how the leasing company calculates.

Understanding Your Lease Calculator Results

The Lease Payment will appear as an approximate amount after inserting your details. Understanding how the payment is broken down can help you decide if a lease is right for your budget.

Monthly Lease Payment – An approximated amount you\'ll be paying each month.

Depreciation Charge – Amount paid for the vehicle value.

Finance Charge – An approximated amount you are paying for sourcing the finance. Based on the Adjusted Capsule Price, Residual Value and Money Factor.

Overall Base Payments – An approximate monthly amount you/ll be paying multiplied by the Lease Term.

Lease Term – How many months the lease will run.

You also may be required to pay additional costs when leasing a vehicle such as Insurance, Registration, Repairs, Excess Mileage, and Wear & Tear fees.

Factors That Affect My Lease Payment

There are several elements that affect how much you\'ll be paying when leasing.

Vehicle Price- The less you paid for the vehicle, the less you\'ll be paying each month. As your AdjustedCapsule Price will be lower.

Residual Value – The higher the vehicle Residual Value, the less you\'ll be paying in depreciation charges.

Money Factor – The higher the money factor, the more you\'ll be paying in finance charges.

LEASE TERM – The more months you have the less you perhaps pay, however this depends.

Initial Payment – A larger initial payment can help reduce your monthly payments.

Extra Charges – You may be required to pay extra capsule fees, dealer fees, document fees and other fees which can increase your AdjustedCapsule Price.

Sales Tax – Sales Tax laws vary between states so please note it may be applied to your monthly payments.

Mileage – The majority of leasing options provide mileage per year, typically 10,000, 12,000 and 15,000. However a higher mileage may increase leasing payment.

Benefits of Using A Lease Calculator

This is a useful tool for anyone wishing to lease a new vehicle. It can help determine:

Approximate Monthly Payment – Decide how much you\'ll be paying each month for a lease.

Compare Lease Offers – Compare different vehicles, prices, money factors and lease terms.

Easy To Budget – Helps you determine if you can afford a certain amount.

Compare Initial Payments – Determine how putting a larger deposit will affect monthly payments.

Compare Lease Terms – Compare what you\'d pay for a 24 month, 36 month or 48 month lease.

Understand Finance Charge – Understand what you are paying for depreciation and finance.

Compare Offers With Dealers- Have an idea of what you should expect to pay to determine if the deal is good.

For Example if you comparing two SUV\'s with different Residual Values this will help you to understand why you may be having a lower monthly payment for a higher vehicle price.

Accuracy Of Lease Calculator And Assumptions

Kindly note this Lease calculator provides approximated results based on your inputs. Multiple factors will affect what is actually paid. Such as the leasing company, Dealership, State Regulations and Contract.

Standard assumption:

• Money Factor will remain consistent across Lease Term.
• Adjusted Capsule Price and Residual Value are known.
• Charges may not automatically be calculated such as:
• Sales Tax (State & Local)
• Registration & Title Fee
• Dealer Document Fee
• Acquisition & Disposal Fee
• Incentive & Manufacturer Rebate
• Security Deposit & Extra charges
• Excess Mileage & Wear & Tear Penalties
• Maintenance Package & Insurance.

This payment is only an indication. Always ensure you fully understand the leasing agreement. Confirm Residual Value and Money Factor. And request full breakdown from the leasing company.

FAQs

1. What Is A Lease Calculator?

Lease Calculators are online calculators that provide you with indicators on what you may pay each month when leasing a vehicle. It will allow you to see what you could be paying for a lease based on the vehicle price, initial payment, residual value, money factor and lease term.

2. How IsMonthly Car Lease Payment Calculated?

Lease payments are generally calculated based upon a combination of the depreciation and finance charge. The depreciation is based on the adjusted capsule price and residual value. Thefinance charge is based on the money factor and capsule price and residual value added together. Sales tax and extra may add onto your final amount.

3. What Is Residual Value In regards To Car Leasing?

Residual Value is simply the approximate market value of the vehicle at the end of your lease. It is often expressed as a percentage of MSRP. The higher the residual value means you\'ll be paying less in depreciation regularly.

4. What Is The Money Factor?

The Money Factor is a decimal number utilised by leasing companies to calculate how much is charged for financing. Multiply money factor by 2400 to see what approximate APR it is. For example a money factor of 0.00200 is approximately 4.8%.

5. Should I Pay More On Initial Payment?

Yes if you pay a larger initial payment you\'re reducing your monthly payments. Essentially it is lowering your adjusted Capsule Price. However be aware when paying large deposits on leases. As you may not get that money back if the vehicle is stolen or written off. We recommend looking at the overall cost of leasing and ensuring you still have enough money.

6. What Lease Term Would I Typically Take On A Car In The United States?

Typically 24, 36 and 48 month leases can be seen for vehicles in the United States. 36 Month leases are very popular. But ultimately it depends on the vehicle, money you can pay each month, mileage and incentives.

7. Do Lease Calculators Include Tax And Extra Fees?

Basic lease calculators often won\'t include Tax, Registration, Acquisition Fees,Documentation Fees and other costs. Kindly be aware of the rules around Tax in your State and ensure you receive a full breakdown of all charges from the leasing company.