Auto Lease Calculator Estimate lease payments, compare leasing vs. buying, and avoid dealer traps — with real 2025 money ...
Auto Lease Calculator
Estimate lease payments, compare leasing vs. buying, and avoid dealer traps — with real 2025 money factors, residuals, and fees.
Lease Payment Formula**:
$$ \text{Payment} = \left( \frac{\text{Cap Cost} - \text{Residual}}{\text{Term}} \right) + \left( \text{Cap Cost} + \text{Residual} \right) \times \text{Money Factor} $$
Then add tax: **Total = (Depreciation + Finance) × (1 + Tax Rate)**
Example** ($40K MSRP, $38K cap, 55% residual, 0.0015 MF, 36 mo, 8% tax):
- Depreciation = ($38,000 − $22,000) / 36 = **$444.44**
- Finance = ($38,000 + $22,000) × 0.0015 = **$90.00**
- Pre-tax = $534.44
- Tax = $534.44 × 0.08 = **$42.76**
- Total = $577.20/mo** (matches dealer quote)
✅ Pro Tip**: Always negotiate **cap cost** — just like buying. $2,000 off MSRP = ~$55/mo savings.
⚠️ Watch for these costly traps:
- “$0 Down” with rolled fees** — $895 acq + $395 disp + $500 doc = $1,790 added to cap → +$50/mo
- Inflated residual** — 60% vs. 55% may look good, but often paired with higher money factor
- “No Security Deposit”** — waived $500 deposit = +0.0003 MF → +$18/mo
- 15K mi/year “bonus”** — most drivers use 12K; you pay for unused miles
✅ Protect Yourself**:
- Get the **Lease Worksheet** (not just the ad)
- Verify **cap cost**, **residual**, **money factor** — all 3 must be disclosed
- Avoid GAP insurance from dealer — get it from insurer for 1/2 price
| Brand | 36-Mo Residual | Typical MF | $40K Lease ($2K down) |
|---|---|---|---|
| Toyota | 62% | 0.00125 | $495/mo |
| Honda | 60% | 0.00150 | $525/mo |
| Ford | 55% | 0.00200 | $585/mo |
| BMW | 53% | 0.00225 | $650/mo |
📉 Lease vs. Buy (36 mo)**:
- Lease**: $577 × 36 + $2,000 = **$22,772**
- Buy** ($40K loan @ 7.2%, 72 mo): $634 × 36 = **$22,824** (but you own $22K asset)
- → Lease wins only if you *don’t want equity* and drive ≤12K mi/yr
➡️ Standard Lease
Enter MSRP, negotiated cap cost, residual %, money factor → get true payment.
➡️ Lease vs. Buy
Compare total 3-year cost: lease payments vs. loan payments + equity.
➡️ Mileage Overage
“I drive 15K/yr on a 12K lease” → see $750/yr penalty.
➡️ Lease End
“Residual $22K, market $25K” → $3,000 hidden equity → buy and sell!
Note: Uses 2025 avg. money factors (0.00125–0.00250), fees, and tax rules (most states tax payment, TX/FL tax cap).