Auto Lease Calculator
Calculate auto lease payments, compare lease vs buy options, and analyze mileage allowances with comprehensive vehicle leasing tools.
Vehicle & Lease Terms
Negotiated price (6.7% off MSRP)
Lease Factors & Fees
Equivalent APR: 3.00%
$26,100 residual value
Lease Payment Results
Monthly Payment
$477.084
Including tax & options
Total Lease Cost
$21,265.008
36 month total
Upfront Costs
$3,695
Due at signing
Cost per Mile
$0.59
Based on 12,000/year
Lease Payment Breakdown
Lease Structure
Monthly Payment Breakdown
Mileage Allowance Analysis
Lease vs Buy Comparison
Leasing (36 months)
Buying (Same Period)
🏠 Buying is Better
Buying saves approximately $11,509.292 over the 36-month period.
What is Auto Lease Calculator?
Understanding Auto Leasing
Auto leasing is essentially a long-term rental agreement where you pay for the depreciation of a vehicle during the lease term, plus financing charges. At the end of the lease, you return the car unless you choose to purchase it at the predetermined residual value.
How Lease Payments Are Calculated
Monthly Payment = Depreciation + Finance Charge + Tax
Depreciation = (Capitalized Cost - Residual Value) ÷ Lease Term
Finance Charge = (Capitalized Cost + Residual Value) × Money Factor
Key Lease Terms
- Capitalized Cost: Negotiated selling price minus down payment/trade
- Residual Value: Predicted car value at lease end
- Money Factor: Lease's equivalent of interest rate
- Lease Term: Duration of lease contract (24-48 months)
Lease Fees
- Acquisition Fee: Upfront processing fee ($500-$1000)
- Disposition Fee: Fee when returning car ($300-$500)
- Security Deposit: Refundable deposit (often waived)
- Excess Wear: Charges for damage beyond normal wear
Money Factor vs Interest Rate
Money factor is the leasing equivalent of an interest rate, but expressed as a decimal. To convert money factor to APR, multiply by 2,400:
Money Factor 0.00125 × 2,400 = 3.0% APR
Typical money factors range from 0.0010 to 0.0030, equivalent to 2.4% to 7.2% APR. Lower money factors result in lower monthly payments.
Mileage Allowances and Overage Fees
Lease contracts specify annual mileage limits, typically 10,000, 12,000, or 15,000 miles per year. Exceeding these limits results in per-mile charges at lease end.
Standard Mileage
12,000 miles/year is most common. Higher allowances increase monthly payments but avoid overage fees if you drive more.
Overage Fees
Typically $0.15-$0.30 per mile over limit. A 3,000-mile overage could cost $450-$900 at lease end.
Planning Tips
Estimate your annual driving conservatively. It's often cheaper to pay for higher mileage upfront than overage fees later.
Wear and Tear Considerations
At lease end, the vehicle is inspected for excessive wear and tear beyond normal use. Common charges include:
Acceptable Wear
- • Minor scratches and chips
- • Normal tire wear with 2/32" tread
- • Interior wear from regular use
- • Small dents under specified size limits
Excessive Wear Charges
- • Deep scratches or dents
- • Tire wear below 2/32" tread depth
- • Stains, burns, or tears in interior
- • Missing or damaged equipment
Lease-End Options
Return the Vehicle
Simply return the car and walk away (after paying any excess wear, mileage, or disposition fees). Most common option.
Purchase the Vehicle
Buy the car at the predetermined residual value. Good option if the car is worth more than the residual or you want to keep it.
Lease Another Vehicle
Trade into a new lease. May avoid disposition fee and get incentives for loyalty. Dealers often waive wear charges.