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Lease Calculator

Calculate lease payments

Lease Analysis

Lease Calculator

Calculate lease payments and total lease costs. Essential for auto leasing, equipment financing, and property rentals.

How to Use Lease Calculator

  1. 1.**Enter vehicle price** (MSRP or negotiated price)
  2. 2.**Enter down payment** (initial payment amount)
  3. 3.**Enter residual value** (value at lease end)
  4. 4.**Enter money factor** (lease interest rate)
  5. 5.**Enter lease term** in months
  6. 6.**Click "Calculate Lease"** to see results

Features

  • •**Monthly Payment**: Calculate regular lease payment
  • •**Total Payments**: Total of all monthly payments
  • •**Total Lease Cost**: Including down payment
  • •**Lease Analysis**: Complete cost breakdown

Lease Calculation Formula

Monthly Payment = (Capitalized Cost + Residual Value) × Money Factor

Where:

  • •Capitalized Cost = Vehicle Price - Down Payment
  • •Residual Value = Vehicle value at lease end
  • •Money Factor = Interest rate expressed as decimal
  • •Lease Term = Number of months

Understanding Lease Terms

Money Factor

  • •**Interest rate equivalent**: Money Factor × 2400 = APR
  • •**Small decimal**: Typically 0.001-0.003
  • •**Negotiable**: Can often be negotiated
  • •**Lower is better**: Reduces monthly payment

Residual Value

  • •**Future value**: Vehicle worth at lease end
  • •**Percentage**: Usually 45-65% of MSRP
  • •**Brand dependent**: Some brands hold value better
  • •**Mileage affects**: Higher mileage = lower residual

Capitalized Cost

  • •**Vehicle price**: Negotiated selling price
  • •**Minus down payment**: Initial cash payment
  • •**Plus fees**: Acquisition, documentation fees
  • •**Financed amount**: What you're actually leasing

Types of Leases

Closed-End Lease

  • •**Fixed residual**: Predetermined end value
  • •**No surprise costs**: Known end value
  • •**Most common**: Standard auto leases
  • •**Walk away option**: Return vehicle at end

Open-End Lease

  • •**Variable residual**: Based on actual market value
  • •**Risk to lessee**: May owe if value drops
  • •**Less common**: Commercial leases sometimes
  • •**Mileage sensitive**: End value heavily affected

Single-Payment Lease

  • •**Prepaid interest**: Pay all interest upfront
  • •**Lower monthly**: Only depreciation payments
  • •**Large upfront**: Significant initial payment
  • •**Interest savings**: Can save money overall

Lease vs. Buy Comparison

Lease Advantages

  • •**Lower monthly payments**: Typically 30-60% less
  • •**New car every few years**: Always driving newer
  • •**Warranty coverage**: Usually entire lease term
  • •**No trade-in hassle**: Return vehicle at end
  • •**Tax benefits**: Business use may be deductible

Buy Advantages

  • •**Ownership**: Vehicle is yours
  • •**No mileage limits**: Drive as much as you want
  • •**Customization**: Modify as desired
  • •**Equity building**: Value to sell or trade
  • •**No end-of-lease fees**: Keep as long as you want

Lease Costs Breakdown

Upfront Costs

  • •**Down payment**: Initial payment
  • •**Acquisition fee**: $300-$900 typical
  • •**First month payment**: Due at signing
  • •**Security deposit**: Refundable if no damage
  • •**Title and registration**: State fees

Monthly Costs

  • •**Base payment**: Depreciation + interest
  • •**Taxes**: Sales tax on payment
  • •**Fees**: Various administrative charges
  • •**Insurance**: Usually required higher coverage

End-of-Lease Costs

  • •**Disposition fee**: $300-$600 for return processing
  • •**Excess mileage**: $0.15-$0.25 per mile over limit
  • •**Wear and tear**: Charges for damage beyond normal
  • •**Early termination**: Significant penalties if ended early

Lease Tips

Before Leasing

  • •**Check credit score**: 650+ typically required
  • •**Know your mileage**: Be realistic about usage
  • •**Research residual values**: Understand future worth
  • •**Compare offers**: Shop multiple dealerships
  • •**Negotiate everything**: Price, money factor, fees

During Lease

  • •**Stay within mileage**: Avoid excess charges
  • •**Maintain properly**: Prevent wear and tear charges
  • •**Keep records**: Document all maintenance
  • •**Insurance requirements**: Maintain proper coverage
  • •**Report issues early**: Address problems promptly

At Lease End

  • •**Inspect together**: Dealer and lessee present
  • •**Document condition**: Photos before return
  • •**Understand charges**: Question any questionable fees
  • •**Consider purchase option**: Buy if below market value
  • •**Plan ahead**: Arrange next vehicle early

Money Factor to APR Conversion

Conversion Formula

APR = Money Factor × 2400

Examples

  • •**Money Factor 0.00125** = 3.0% APR
  • •**Money Factor 0.00250** = 6.0% APR
  • •**Money Factor 0.00375** = 9.0% APR

Why 2400?

  • •**Money factor**: Monthly decimal rate
  • •**2400**: 12 months × 100 (for percentage)
  • •**Industry standard**: Universal conversion factor

Lease Examples

Example 1: Compact Car

  • •Vehicle Price: $25,000
  • •Down Payment: $2,000
  • •Residual Value: $12,500 (50%)
  • •Money Factor: 0.00125 (3% APR)
  • •Term: 36 months
  • •Monthly Payment: $344

Example 2: Luxury SUV

  • •Vehicle Price: $50,000
  • •Down Payment: $5,000
  • •Residual Value: $30,000 (60%)
  • •Money Factor: 0.00250 (6% APR)
  • •Term: 48 months
  • •Monthly Payment: $781

Lease Considerations

Business Use

  • •**Tax advantages**: Lease payments may be deductible
  • •**Fleet management**: Easier vehicle replacement
  • •**Budget predictability**: Fixed monthly costs
  • •**Balance sheet advantages**: Off-balance sheet financing

Personal Use

  • •**Lower payments**: More car for same monthly cost
  • •**Latest technology**: Always driving newer vehicles
  • •**Warranty benefits**: Major repairs covered
  • •**Flexibility**: Easy to change vehicles every few years