Auto Lease Calculator

This calculator estimates a closed-end vehicle lease payment by separating depreciation from the rent charge. It first estimates residual value as MSRP × residual percentage. It then subtracts that residual from the negotiated capitalized cost after the entered cost reduction and spreads the difference over the lease term. The rent charge is modeled as (adjusted capitalized cost + residual value) × APR ÷ 2,400. The displayed payment is the rounded sum of depreciation and rent charge. MSRP is used for the residual percentage in this model. Negotiated capitalized cost is the agreed vehicle amount before the entered reduction. In an actual lease worksheet, the capitalized cost can also include an acquisition fee, add-ons, taxes, or a trade balance, while rebates can reduce it. A down payment or capitalized-cost reduction lowers the modeled adjusted cost here, but ask how the contract treats cash paid at signing if the vehicle is stolen or totaled. The lessor’s worksheet controls the actual adjusted cap cost. Lease advertisements often quote a money factor rather than APR. This calculator accepts an APR-equivalent input and uses APR ÷ 2,400 as the common approximation to the money factor. If a lessor gives you a money factor, multiply it by 2,400 to create the approximate APR input. The relationship is a comparison convention, not a guarantee that every contract’s rent charge will match this simplified formula. Review the disclosure for the exact factor and calculation. Residual value is the lessor’s estimate of the vehicle’s value at lease end. A higher residual reduces the depreciation portion and can lower the payment, but it does not promise that you can sell the car for that amount. The term controls how many months the depreciation is spread across. Mileage allowance, condition standards, disposition fees, acquisition fees, registration, sales tax, and early-termination charges are outside this calculator unless you separately account for them in the offer. The Consumer Financial Protection Bureau and Federal Trade Commission describe leasing as a contract with payment, mileage, end-of-term, and early-termination terms. Compare the amount due at signing and total scheduled payments, not only the monthly headline. Use the auto loan calculator when you intend to own the vehicle and want an amortizing loan comparison. Ask for a written lease worksheet showing cap cost, residual dollars, money factor, taxes, fees, mileage, and purchase option before signing. Common mistakes include entering a dollar residual as a percentage, confusing MSRP with negotiated cost, using APR where a money factor is required without conversion, and ignoring taxes or a large upfront reduction. Save the quote date and rerun the scenario whenever the negotiated cost, term, residual, factor, mileage, or fees change. Ask for the same worksheet for every vehicle you compare. Record amount due at signing, total scheduled payments, mileage allowance, purchase option, disposition fee, and insurance requirements. The lowest monthly payment is not necessarily the lowest total cost, particularly when it depends on a large reduction, a longer term, or an aggressive residual assumption. Ask for the same worksheet for every vehicle and record amount due at signing, total scheduled payments, mileage allowance, purchase option, disposition fee, and insurance requirements.