Free Car Lease Calculator - Estimate Your Monthly Lease Payment
Enter your vehicle price, residual value, money factor, and lease term to instantly calculate your monthly lease payment and total lease cost.
How to Use This Car Lease Calculator
Enter the MSRP, your negotiated selling price, the residual value, and the money factor from your lease offer. You can also enter your APR instead of the money factor and the calculator will convert it automatically. Add your down payment, trade-in, tax rate, and acquisition fee for a complete picture of your monthly payment and total lease cost.
What Is a Money Factor?
The money factor is the interest rate on a lease expressed as a small decimal instead of a percentage. To convert money factor to APR multiply by 2400. For example a money factor of 0.00125 equals an APR of 3.0%.
Always ask your dealer for the money factor before signing a lease. A high money factor means you are paying more in finance charges — just like a high interest rate on a loan.
What Is Residual Value?
The residual value is what the leasing company estimates the vehicle will be worth at the end of your lease term. It is expressed as either a dollar amount or a percentage of MSRP.
A higher residual value means lower monthly payments because you are only paying for the depreciation between the selling price and the residual. A vehicle with a 60% residual holds its value well and is generally a better lease deal.
Capitalized Cost — What It Means
The capitalized cost (cap cost) is the negotiated price of the vehicle minus your down payment and trade-in value, plus any fees rolled into the lease. This is the number the lease is actually based on — not the MSRP.
Always negotiate the selling price down before discussing monthly payments. Reducing the cap cost by $1,000 saves you money every single month of the lease.
Leasing vs Buying — Which Is Better?
Neither is universally better — it depends on your situation:
Leasing makes sense if:
- You want a new car every 2–3 years
- You drive under the annual mileage limit
- You want lower monthly payments
- You do not want to deal with selling the car later
Buying makes sense if:
- You plan to keep the car for 5+ years
- You drive a lot of miles annually
- You want to build equity
- You want no restrictions on modifications or wear
Watch Out for These Lease Fees
- Acquisition fee — charged by the bank, typically $500–$1,000, often non-negotiable
- Disposition fee — charged at lease end if you do not buy the car or lease another, typically $300–$500
- Excess mileage fee — typically $0.15–$0.30 per mile over your limit
- Excess wear and tear — charged at lease end for damage beyond normal use
- Early termination fee — can be very expensive if you need to exit a lease early
Frequently Asked Questions
Can I negotiate a lease?
Yes — you can and should negotiate the selling price (cap cost), money factor, and sometimes the acquisition fee. The residual value is set by the manufacturer and cannot be negotiated.
What happens at the end of a lease?
You have three options — return the car and walk away, lease a new vehicle, or purchase the car at the predetermined residual value.
What is a good money factor?
A money factor below 0.0015 (equivalent to 3.6% APR) is generally considered good. Always compare the equivalent APR to current auto loan rates to see if the lease financing is competitive.
Should I put money down on a lease?
Generally no — financial experts often advise against large down payments on leases. If the car is totaled or stolen the insurance pays the leasing company not you, and you lose your down payment. A smaller down payment reduces your risk.
What happens if I go over my mileage limit?
You will be charged a per-mile fee at lease end, typically $0.15–$0.30 per mile. If you know you will go over your limit negotiate a higher mileage allowance upfront — it is almost always cheaper than paying overage fees.
Can I buy the car at the end of the lease?
Yes — your lease agreement will specify the buyout price which is typically the residual value plus a small purchase fee. If the car is worth more than the residual value at lease end buying it can be a great deal.
Estimates only. Actual lease payments vary based on dealer, manufacturer incentives, local taxes, and specific lease terms. Always review all terms carefully before signing a lease agreement. This is not financial advice.
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CalcuVise
Simple financial calculators for loans and budgeting.
Estimates only. Actual payments may vary by lender.