1. What is a Car Lease Calculator?

The Car Lease Calculator helps you determine the monthly payment for leasing a vehicle by calculating both the depreciation and finance components of the lease payment.

2. How Does the Calculator Work?

The calculator uses standard lease formulas:

Where:

• \( Dep \) — Monthly depreciation amount ($)
• \( Fin \) — Monthly finance fee ($)
• \( MP \) — Total monthly payment ($)
• \( CC \) — Capitalized cost (vehicle price + fees) ($)
• \( RV \) — Residual value (end of lease value) ($)
• \( T \) — Lease term (months)
• \( MF \) — Money factor (lease interest rate as decimal)

Explanation: The depreciation covers the vehicle's value loss during the lease, while the finance fee is essentially the interest charge.

3. Importance of Lease Calculation

Details: Understanding lease components helps negotiate better terms, compare lease offers, and budget accurately for vehicle expenses.

4. Using the Calculator

Tips: Enter all values in dollars except term (months) and money factor (decimal). Money factor can be converted from APR by dividing by 2400.

5. Frequently Asked Questions (FAQ)

Q1: What's a good money factor?
A: Rates vary but typically range from 0.0010 (2.4% APR) to 0.0030 (7.2% APR). Lower is better.

Q2: How is residual value determined?
A: The leasing company sets it based on projected value at lease end, typically 50-60% of MSRP for 36 months.

Q3: What's included in capitalized cost?
A: Vehicle price plus any fees or add-ons you're financing, minus any down payment or trade-in credit.

Q4: Are there other lease fees?
A: Yes, this calculator shows base payment only. Expect acquisition fees, taxes, and possibly disposition fees.

Q5: How can I lower my lease payment?
A: Negotiate lower CC, higher RV, longer term, or better MF. Larger down payments reduce monthly cost but aren't recommended.