Auto Lease Calculator with Trade in

Leasing a car with a trade-in is a common way to finance a vehicle purchase. This calculator helps you estimate your monthly lease payments and total cost, factoring in the value of your current vehicle.

How to Use This Calculator

To calculate your auto lease payments with trade-in:

Enter the current value of your trade-in vehicle
Enter the purchase price of the new vehicle
Enter the down payment amount
Enter the lease term in months
Enter the annual percentage rate (APR)
Click "Calculate" to see your estimated monthly payment and total cost

The calculator will show you the monthly payment amount and the total cost of the lease, including the trade-in value.

Formula Used

The calculator uses the following formula to calculate the monthly lease payment:

Monthly Payment = P × (r × (1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal amount (Purchase Price - Down Payment - Trade-In Value)
r = Monthly interest rate (APR ÷ 12 ÷ 100)
n = Number of payments (Lease Term in months)

The total cost of the lease is calculated by multiplying the monthly payment by the lease term.

Worked Example

Let's calculate a lease payment for a $30,000 vehicle with a $5,000 trade-in, $2,000 down payment, 36-month term, and 3.5% APR.

Principal = $30,000 (purchase price) - $5,000 (trade-in) - $2,000 (down payment) = $23,000
Monthly rate = 3.5% ÷ 12 = 0.0029167
Monthly payment = $23,000 × (0.0029167 × (1 + 0.0029167)^36) / ((1 + 0.0029167)^36 - 1) ≈ $625.45
Total cost = $625.45 × 36 ≈ $22,516.20

This means you would pay approximately $625.45 per month for 36 months, with a total lease cost of about $22,516.20.

FAQ

How does a trade-in affect my lease payment?: The trade-in value reduces the principal amount you need to finance, which typically lowers your monthly payment.
What happens if I don't pay off the lease at the end?: If you don't pay off the lease, you'll owe the remaining balance plus any fees. It's important to check your lease agreement for details.
Can I get a lower interest rate with a trade-in?: Some lenders may offer better rates if you have a trade-in, but this depends on your credit score and other factors.