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Lease Calculator
Estimate a monthly car lease payment including the negotiated price, residual value and sales tax.
A lease payment is not a smaller loan payment; it is built differently, from the value the item loses during the lease plus a finance charge. This calculator shows both parts, so you can judge a lease quote piece by piece instead of by the monthly figure alone.
How to use this calculator
- Enter the item's price (the capitalised cost).
- Add any down payment or trade-in that reduces it.
- Enter the residual value (what it should be worth at lease end) and the term.
- Add the money factor or interest rate, then press calculate.
The three numbers to negotiate
The price, the residual and the money factor decide the payment. The price is negotiable like any purchase; the residual is usually set by the lessor; and the money factor (multiply by 2,400 to compare it with an interest rate) sometimes hides a mark-up. Check all three before signing.
Frequently asked questions
What is a money factor?
The finance charge in lease maths, written as a small decimal. Multiply it by 2,400 to get the roughly equivalent yearly interest rate.
Is leasing cheaper than buying?
Monthly payments are usually lower, but you build no ownership and face mileage and wear limits. Over many years, buying and keeping is usually cheaper in total.
What happens at the end of a lease?
You return the item, buy it at the residual value, or lease another. Excess mileage and damage are charged, so check the limits against your real use.