Calculate monthly lease payments, total cost, and understand lease terms for vehicles or equipment
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Leasing can be confusing with money factors, residuals, and cap costs. Our calculator breaks down exactly what you'll pay monthly, the total cost of the lease, and how different terms affect your payment. Compare lease vs. buy scenarios and negotiate smarter at the dealership.
A lease payment has two components: depreciation (the vehicle's value loss during your lease) and a finance charge (interest). The money factor (similar to interest rate) and residual value (predicted end value) are key terms. Lower money factor and higher residual mean lower payments.
Lease Payment Formula
Payment = (Cap Cost - Residual) / Term + (Cap Cost + Residual) × Money FactorCalculate payments and total cost before visiting the dealership.
Compare total lease cost against purchase financing.
Check if the dealer's quoted payment matches the terms they're offering.
Money factor is the lease interest rate divided by 2400. A money factor of 0.00125 equals 3% APR. Multiply money factor by 2400 to get the equivalent interest rate.
Higher residual means lower payments. Luxury brands often have 55-60% residuals on 36-month leases. Economy cars might be 45-55%. Check multiple quotes as residuals vary by brand and model.
Down payments reduce monthly payments but don't save money overall. If the car is totaled or stolen, you lose that down payment. Keep down payments minimal and save the cash.
36 months is most common, balancing payment and warranty coverage. 24-month leases have higher payments but more flexibility. 48+ month leases may extend beyond warranty, adding risk.