Auto Lease Calculator

Auto Lease Calculator

Leasing a car is a popular way to drive a new vehicle with lower monthly payments than buying. But figuring out your lease payment can be tricky because it depends on several factors: the car’s price, residual value, money factor, taxes, and fees. That’s where an auto lease calculator comes in; it simplifies the math and shows you your expected monthly payment clearly.

This auto lease calculator lets you enter the vehicle’s MSRP, selling price, lease term, residual value, money factor, and any upfront costs. It then calculates your monthly payment and breaks it down into depreciation, finance (rent) charge, and taxes.

How Lease Payments Are Calculated

A lease works differently from a loan. Instead of paying off the entire car price, you pay for the portion of the vehicle’s value you use during the lease term, plus a finance charge. Here’s a breakdown with formulas:

1. Depreciation Fee
   The depreciation fee covers the loss in the car’s value over the lease term. $$\text{Depreciation Fee} = \frac{\text{Net Capitalized Cost} - \text{Residual Value}}{\text{Lease Term (months)}}$$Depreciation Fee=Lease Term (months)Net Capitalized Cost−Residual Value​ Where:
   • Net Capitalized Cost = Selling Price + Fees - Down Payment - Trade-In
   • Residual Value = MSRP × Residual Percentage
2. Rent Charge (Finance Charge)
   The rent charge is like interest on a loan and is based on the money factor: $$\text{Rent Charge} = (\text{Net Capitalized Cost} + \text{Residual Value}) \times \text{Money Factor}$$Rent Charge=(Net Capitalized Cost+Residual Value)×Money Factor
3. Monthly Tax
   Sales tax is typically applied to the monthly payment: $$\text{Tax Amount} = (\text{Depreciation Fee} + \text{Rent Charge}) \times \frac{\text{Tax Rate}}{100}$$Tax Amount=(Depreciation Fee+Rent Charge)×100Tax Rate​
4. Total Monthly Payment
   Finally, your monthly payment includes all components: $$\text{Monthly Payment} = \text{Depreciation Fee} + \text{Rent Charge} + \text{Tax Amount}$$Monthly Payment=Depreciation Fee+Rent Charge+Tax Amount

What You Need to Enter

To calculate your lease, input the following:

• MSRP (Sticker Price) – Manufacturer’s suggested price.
• Selling Price – Price you are paying after negotiations.
• Lease Term – Duration of the lease in months.
• Residual Value – Percent of MSRP expected at lease end.
• Money Factor – Lease interest rate in decimal form (e.g., 0.00125).
• Down Payment & Trade-In – Upfront amounts that reduce your net capitalized cost.
• Acquisition Fee – Dealer fee to start the lease.
• Sales Tax Rate – Tax applied to the monthly payment.

Once entered, the calculator shows your monthly payment and a visual breakdown, so you know exactly where your money is going.

Why Use a Lease Calculator

Using a lease calculator helps you:

• Understand exactly how your monthly payment is calculated
• Compare different lease offers before visiting the dealership
• Plan your budget accurately
• Test how changing the down payment, term, or residual value affects your payment

Even small changes in these values can have a significant impact on your monthly cost. Experimenting with different scenarios helps you find the lease that fits your budget best.

Example Calculation

Suppose you have:

• MSRP = $35,000
• Selling Price = $33,000
• Lease Term = 36 months
• Residual = 55%
• Money Factor = 0.00125
• Down Payment = $2,000
• Acquisition Fee = $695
• Sales Tax = 8%

Step 1 – Residual Value:$$35,000 \times 0.55 = 19,250$$35,000×0.55=19,250

Step 2 – Net Cap Cost:$$33,000 + 695 - 2,000 = 31,695$$33,000+695−2,000=31,695

Step 3 – Depreciation Fee:$$\frac{31,695 - 19,250}{36} \approx 345.97$$3631,695−19,250​≈345.97

Step 4 – Rent Charge:$$(31,695 + 19,250) \times 0.00125 \approx 63.69$$(31,695+19,250)×0.00125≈63.69

Step 5 – Tax:$$(345.97 + 63.69) \times 0.08 \approx 32.90$$(345.97+63.69)×0.08≈32.90

Step 6 – Total Monthly Payment:$$345.97 + 63.69 + 32.90 \approx 442.56$$345.97+63.69+32.90≈442.56

So your monthly lease payment is approximately $443.

Summary

An auto lease calculator from BankBrisk.com takes the guesswork out of leasing. It shows your monthly payment and breaks it into depreciation, finance charges, and taxes. By understanding the formulas behind the calculation, you can make informed decisions, experiment with different inputs, and choose a lease that fits your budget and lifestyle.