Auto Lease Calculator

🚗 Lease Calculator

Enter your vehicle and lease details

Vehicle MSRP ($)

Down Payment ($)

Lease Term (months)

Residual Value (%)

Money Factor

Sales Tax (%)

Acquisition Fee ($)

Annual Mileage Allowance

📊 Lease Results

Your calculated lease breakdown

Monthly Payment $0

Total Down Payment $0

Monthly Depreciation $0

Monthly Interest (Rent) $0

Monthly Tax & Fees $0

Total Lease Cost $0

💰 Lease vs Buy Analysis

Compare the financial impact of leasing versus buying

3-Year Total Cost

Lease payments + down payment

5-Year Total Cost

Two consecutive leases

3-Year Ownership Cost

Payments + depreciation - residual

5-Year Ownership Cost

Total payments + maintenance

📚 Auto Leasing Guide

Understanding the fundamentals of auto leasing

Auto leasing allows you to drive a new vehicle for a predetermined period while making monthly payments. Unlike buying, you're essentially renting the vehicle and paying for its depreciation during your lease term.

🎯 Lower Monthly Payments

Lease payments are typically lower than loan payments because you're only paying for the vehicle's depreciation during the lease term, not the entire purchase price.

🔧 Warranty Coverage

Most leases are covered under the manufacturer's warranty, meaning major repairs are typically covered, reducing unexpected maintenance costs.

🚗 Latest Technology

Leasing allows you to drive newer vehicles with the latest safety features, technology, and fuel efficiency improvements every few years.

💼 Tax Benefits

For business use, lease payments may be tax-deductible, potentially providing significant tax advantages compared to purchasing.

❓ Frequently Asked Questions

What is a money factor and how does it relate to interest rate?

The money factor is the lease equivalent of an interest rate. To convert money factor to APR, multiply by 2400. For example, a money factor of 0.00125 equals 3% APR (0.00125 × 2400 = 3).

What happens if I exceed my mileage allowance?

Exceeding your mileage allowance results in excess mileage charges, typically $0.15-$0.30 per mile. It's important to choose a mileage allowance that matches your driving habits.

Can I terminate my lease early?

Yes, but early termination usually involves significant fees. These can include remaining payments, early termination fees, and disposition charges. Review your lease agreement carefully.

What is residual value and why does it matter?

Residual value is the estimated worth of the vehicle at the end of the lease term. Higher residual values result in lower monthly payments because you're paying for less depreciation.

Should I lease or buy?

Leasing is typically better if you want lower monthly payments, like driving newer vehicles, and don't drive excessive miles. Buying is better for long-term ownership and building equity.

Advanced Auto Lease Calculator