Car Lease Calculator
The Car Lease Calculator works out your monthly lease payment from the cap cost, residual value, money factor (lease interest rate), and any upfront payments. It also compares the total 5-year cost of leasing versus buying.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
Car Lease Calculator
Monthly Payment, Total Cost & Buy vs Lease
📐 Formula & Method
Lease Payment Formula
Cap Cost = MSRP − Cap Cost Reduction. Residual = MSRP × Residual%. Finance charge = money factor applied to sum of cap cost and residual value.
📋 How to Use
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1
Enter vehicle MSRP and any down payment.
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2
Enter residual value % from dealer.
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3
Enter money factor (ask dealer for the "buy rate").
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4
Select lease term.
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5
See monthly payment and buy vs lease comparison.
Leasing vs Buying — Which Is Right for You?
Leasing offers lower monthly payments and lets you drive a newer car every 2–3 years. Buying costs more per month but builds equity. Leasing makes most financial sense if you drive moderate mileage (under 15,000 miles/year), change cars frequently, and can negotiate a low money factor and high residual value.
Key lease terms to negotiate: money factor (the lease equivalent of interest rate), residual value (higher = lower payments), and cap cost reduction. Dealers sometimes mark up the money factor — always ask for the "buy rate" money factor and compare with published rates.
🔬 Methodology & Accuracy
Formula: Uses the standard mathematical formula shown in the Formula & Method section above. All computations run client-side in your browser — no data is sent to our servers.
Data sources: Tax bands, contribution limits and regulatory rates are taken from official US (IRS, SSA) and UK (HMRC, gov.uk) publications for the current tax year, and updated when bands change.
Last reviewed: January 2025 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.