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Car Lease Calculator

Estimate your car lease payments and total cost.

$350K Avg. Home Price
6.75% Current Avg. Rate
$1,816 Avg. Monthly Payment
30yr Most Popular Term

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How Leases Work

When you lease a vehicle, you’re essentially paying for the depreciation of the car over the lease term plus a finance charge. The key numbers are the residual value (the car’s estimated worth at lease end) and the money factor, which is the lease’s interest rate expressed in a different format.

Money Factor vs APR

The money factor is multiplied by 2400 to get an approximate annual percentage rate (APR). A lower money factor means cheaper financing.

Residual Value

The residual percentage is set by the leasing company and reflects how much of the original MSRP the car is expected to retain after the lease term.

Lease vs Buy

Leasing usually offers lower monthly payments but you never own the car unless you exercise the buyout option at the end. Buying requires higher payments but builds equity.

When Leasing Makes Sense

If you prefer driving a new car every few years, want lower monthly costs, and can keep the mileage low, leasing can be attractive. High mileage, long‑term ownership goals, or desire to customize the vehicle often favor buying.

FAQ

  • What happens at the end of the lease? You can return the car, buy it for the residual value, or sometimes refinance.
  • Are there hidden fees? Common fees include acquisition, disposition, and excess‑wear charges.
  • Can I trade‑in during a lease? Usually only at lease end, unless the lease allows early termination.