Car Lease Calculator

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Category Car Calculators

MSRP ($)Selling Price ($)MonthsMoney Factor (e.g., 0.0025)Residual Value (%)Down Payment ($)

Tax Rate (%)Acquisition Fee ($)Doc Fee ($)Registration/DMV ($)Rebate/Incentives ($)

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About

Leasing a vehicle involves complex variables beyond the sticker price. The monthly payment is a function of the vehicle's depreciation and the "rent charge" (interest) applied to the adjusted capital cost. This calculator helps prospective lessees deconstruct dealer quotes by isolating the Money Factor, Residual Value, and obscure drive-off fees.

Understanding the "Lease Score" is critical for evaluating deal quality. A score represents the ratio of the MSRP to the effective monthly cost. Generally, a ratio of 1.0% (paying 1% of MSRP per month) is considered a standard deal, while anything below 0.8% is exceptional. This tool integrates state-specific registration fee logic to provide a realistic "out-the-door" estimate.

Formulas

The monthly lease payment consists of two main parts: the depreciation charge and the rent charge.

{

Depreciation = Net Cap Cost − ResidualTermRent Charge = Net Cap Cost + Residual × Money Factor

The Money Factor (MF) is the interest rate divided by 2400. To convert APR to MF: MF = APR2400.

Reference Data

Brand	Avg Residual (36mo)	Base Money Factor	Acquisition Fee
Toyota	61%	0.00240	$650
Honda	59%	0.00225	$595
BMW	54%	0.00190	$925
Mercedes-Benz	52%	0.00210	$795
Ford	50%	0.00250	$645
Jeep	48%	0.00290	$595

Frequently Asked Questions

The Money Factor is a way of expressing the interest rate on a lease. It is not a percentage. To convert it to a standard APR, multiply the Money Factor by 2400. For example, a Money Factor of 0.0025 equals 6% APR.

The Residual Value is the predetermined value of the car at the end of the lease. A higher residual value lowers your monthly payments because you are paying for less depreciation over the lease term.

Drive-off fees are the total amount due at signing. This typically includes the first month's payment, a down payment (capital reduction), registration fees, dealer documentation fees, and the bank's acquisition fee.