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Car Lease Calculator

Calculate a car lease payment from the negotiated price, down payment, residual value, money factor (or APR), term and sales tax.

MSRP ($)

Negotiated price (cap cost) ($)

Down payment / cap reduction ($)

Trade-in equity ($)

Fees rolled in (acquisition, doc) ($)

Residual (% of MSRP)

Money factor (or enter APR below)

APR (used if money factor is 0) (%)

Term (months)

Sales tax (%)

How to use it

Negotiate the price (capitalized cost) - it matters as much as on a purchase.
Ask for the residual % and money factor (lease "interest"). Money factor × 2400 ≈ APR.
Enter down payment, trade-in and fees.
Tax rules differ: most US states tax the monthly payment; some tax the full price upfront.

How it works

Adjusted cap cost = price + fees − down − trade. Residual = MSRP × residual %. Depreciation fee = (adjusted cap − residual) ÷ months. Finance fee = (adjusted cap + residual) × money factor. Payment = (depreciation + finance) × (1 + tax).

FAQ

What is a good money factor?

It depends on rates and credit; multiply by 2400 to compare with an APR. 0.0025 ≈ 6% APR.

Should I put money down on a lease?

Large down payments are risky: if the car is totaled early, gap coverage pays the lender, not your down payment back. Many advisers suggest paying only the drive-off fees.

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