Auto Lease Calculator
Estimate a lease monthly payment or solve the maximum vehicle price that fits a target payment.
Uses residual value, APR→money factor, taxes, and common fees with Evans-style results and printing.
| Component | Amount |
|---|---|
| Residual (lease-end value) | — |
| Adjusted cap cost | — |
| Monthly depreciation | — |
| Monthly finance charge | — |
| Monthly tax | — |
*Documentation, tag, title, and registration fees are the same for both leases and purchases. They are not included in the calculated results above. Car dealers might ask for acquisition, security deposit, and disposition fees; these are normally associated with car leases, not car purchases.
The “Total Cost to Own After Lease Ends” and “Total Cost to Own” figures may appear close because the calculator assumes identical conditions. In practice, leases often include extra costs (acquisition, security deposit, disposition) and typically carry higher interest than comparable purchase loans—often adding a few thousand dollars to the total cost to lease versus buy.
| Component | Amount |
|---|---|
| Residual (lease-end value) | — |
| Required base (pre-tax) payment | — |
| Monthly depreciation (at target) | — |
| Monthly finance charge (at target) | — |
*Documentation, tag, title, and registration fees are the same for both leases and purchases. They are not included in the calculated results above. Car dealers might ask for acquisition, security deposit, and disposition fees; these are normally associated with car leases, not car purchases.
The “Total Cost to Own After Lease Ends” and “Total Cost to Own” figures may appear close because the calculator assumes identical conditions. In practice, leases often include extra costs (acquisition, security deposit, disposition) and typically carry higher interest than comparable purchase loans—often adding a few thousand dollars to the total cost to lease versus buy.
Evans Legacy Financial
These calculators provide educational estimates and are not a substitute for professional advice.
How Auto Leases Work (Quick Guide)
A lease is a time-limited agreement to use a vehicle in exchange for monthly payments. Most consumer leases run 24–48 months and use two big numbers to set the payment: depreciation (how much value you use) and a finance charge based on the money factor (a lease version of interest).
Key Inputs You Control
- Vehicle price (cap cost): Negotiate it like a purchase. A lower price reduces the payment.
- Term (months): Commonly 24, 36, or 48. Longer terms spread depreciation but can outlast the warranty.
- APR → Money Factor: The calculator converts APR to MF using MF = APR / 2400.
- Down payment / trade-in: Lowers the adjusted cap cost (what you’re financing in the lease).
- Fees and taxes: Some fees are rolled into the lease (capitalized); others are paid at signing. Sales tax is commonly charged on the monthly payment in many states.
Bank-Set Numbers
- Residual value: The vehicle’s expected value at lease end, usually a % of MSRP. Higher residuals reduce depreciation and lower the payment.
Payment Anatomy
Monthly payment (before tax) = Monthly depreciation + Monthly finance charge:
- Monthly depreciation = (Adjusted cap cost − Residual) ÷ Term
- Finance charge = (Adjusted cap cost + Residual) × Money Factor
Costs to Plan For
- At signing: Down payment, upfront fees, and often the first month’s payment.
- During the term: Monthly payments and routine maintenance per the lease contract.
- At lease end: Disposition fee (if you return it), mileage charges if you’re over the limit, and wear-and-tear adjustments if excessive. If you buy the car, expect to pay the residual (plus taxes/fees).
Lease vs. Buy
Leases can deliver lower monthly payments and predictable terms, but ownership requires a purchase. When you add acquisition, disposition, and higher effective interest in many leases, the total lifetime cost can be higher than buying—especially if you regularly lease new vehicles.