What this calculator shows you
- Payment Calculation
- Calculate monthly lease payments
- Total Cost
- See total lease cost over term
- Money Factor
- Understand the interest rate
- Lease vs Buy
- Compare to purchase cost
How Leasing Works
You pay for depreciation during the lease term plus interest (money factor). At lease end, you return the car or buy it for the residual value. Leasing is essentially renting with mileage restrictions.
When Leasing Makes Sense
Leasing may work for: business use with tax deductions, wanting a new car every 2-3 years, low annual mileage, or not wanting maintenance hassles. For most people, buying and holding is more economical.
Questions people ask
Is leasing cheaper than buying?
Monthly payments are lower, but you never own anything. Over 10 years, buying typically costs less because you have years of payment-free ownership after payoff.
What is money factor?
The money factor is the lease interest rate. Multiply by 2,400 to get the approximate APR. A money factor of 0.002 equals about 4.8% APR.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.