Lease Calculator Estimate payments, compare lease vs. buy, avoid dealer traps, and model mileage risk — with 2025 lease b...
Lease Calculator
Estimate payments, compare lease vs. buy, avoid dealer traps, and model mileage risk — with 2025 lease benchmarks.
Monthly Payment Formula**:
$$ \text{Depreciation} = \frac{\text{Cap Cost} - \text{Residual Value}}{\text{Term}} $$ $$ \text{Finance Fee} = (\text{Cap Cost} + \text{Residual}) \times \text{Money Factor} $$ $$ \text{Payment} = (\text{Depreciation} + \text{Finance Fee}) \times (1 + \text{Tax}) $$
Money Factor ↔ APR**:
$$ \text{APR} = \text{Money Factor} \times 2400 $$ (e.g., 0.00175 × 2400 = **4.2% APR**)
Example** ($35K cap, 58% res on $40K, 36 mos, 0.00175 MF, 7% tax): • Residual = $23,200 • Depreciation = ($35K − $23.2K) / 36 = **$328** • Finance = ($35K + $23.2K) × 0.00175 = **$102** • Pre-tax = $430 → **$460/mo**
✅ Pro Tip**: Always negotiate **cap cost** — residual and MF are often fixed by manufacturer.
⚠️ Avoid these dealer traps:
- Spot delivery** — “Drive off today!” → loan not approved → higher payment or bigger down payment later
- “No security deposit” markup** — $0 SD but MF increased by 0.0003 (=$13/mo × 36 = $468 hidden cost)
- Lease pull-ahead scams** — “$0 due at signing” but $2,500 rolled into cap cost
- Forced wear-and-tear insurance** — $15/mo vs. $350 self-insure at turnover
✅ Pro Tips**:
- Use Multiple Security Deposits (MSD)**: 7 × $500 = lower MF (e.g., 0.00175 → 0.00105 = $30/mo savings)
- Read the **Lease Agreement** — check *adjusted cap cost*, *residual*, *MF*, *fees*
- Target **money factor ≤ 0.0015** (≤3.6% APR) for prime credit
| Term | Residual | MF Range | $40K Cap Payment |
|---|---|---|---|
| 24 mos | 68–72% | 0.00125–0.00200 | $385–$495 |
| 36 mos | 55–62% | 0.00150–0.00225 | $440–$560 |
| 48 mos | 45–52% | 0.00200–0.00275 | $520–$680 |
📉 Lease vs. Buy (36 mos, $40K MSRP)**:
- Lease: $460 × 36 = **$16,560** + $2,500 fees = **$19,060**
- Buy (7.2% loan): $790 × 36 = **$28,440** − $18,200 trade-in = **$10,240 net**
- → **Lease wins if you value new cars + lower upfront**
📉 Early Termination at 24 mos**:
- Payoff balance: **$12,400**
- Sell privately: $22,000 → $9,600 profit
- Turn in: $395 fee → walk away
➡️ Standard Lease
“$35K cap, 58% res, 0.00175 MF — what’s my payment?” → **$460/mo**
➡️ Lease vs. Buy
Compare 36-mo lease vs. 60-mo loan — total cost of ownership.
➡️ Early Termination
“I’m at 24 mos — payoff balance vs. disposition fee?” ($12,400 vs. $395)
➡️ Mileage Planner
“15K/yr on 12K allowance — overage cost?” → 3K × $0.25 × 3 = **$2,250**
Note: Uses exact lease math. Assumes no acquisition/disposition fees in base calc (add to cap cost). Tax applied to total payment.