The Auto Lease Calculator
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Reviewed by Calculator Editorial Team
Use this auto lease calculator to estimate your monthly payments, total cost, and compare lease vs. buy options. Simply enter your vehicle price, down payment, interest rate, and lease term to get an accurate calculation.
How to Use This Calculator
To calculate your auto lease payments:
- Enter the vehicle price (excluding taxes and fees)
- Enter your down payment amount
- Select your interest rate (typically 2-5% for leases)
- Choose your lease term (24-60 months)
- Click "Calculate" to see your results
The calculator will display your estimated monthly payment, total cost of the lease, and the equivalent annual percentage rate (APR).
Formula Used
The auto lease calculator uses the following formula to calculate monthly payments:
Monthly Payment = P × (r × (1 + r)^n) / ((1 + r)^n - 1)
Where:
- P = Principal amount (Vehicle price - Down payment)
- r = Monthly interest rate (Annual rate ÷ 12)
- n = Number of payments (Lease term in months)
Total cost of lease = Monthly payment × Lease term
APR is calculated using the standard loan formula and adjusted for the lease term.
Worked Example
Let's calculate a lease for a $30,000 vehicle with a $3,000 down payment, 3.5% interest rate, and 36-month term:
- Principal = $30,000 - $3,000 = $27,000
- Monthly rate = 3.5% ÷ 12 = 0.0029167
- Monthly payment = $27,000 × (0.0029167 × (1 + 0.0029167)^36) / ((1 + 0.0029167)^36 - 1) ≈ $756.25
- Total cost = $756.25 × 36 ≈ $27,225
- APR ≈ 4.2%
Note: This is an estimate. Actual payments may vary based on your specific lease agreement and dealer terms.
Lease vs. Buy Comparison
Here's a comparison of leasing vs. buying a $30,000 vehicle with $3,000 down payment over 5 years:
| Option | Monthly Payment | Total Cost | Miles/Year |
|---|---|---|---|
| Lease | $756 | $27,225 | 12,000 |
| Buy | $450 | $64,800 | 12,000 |
Leasing may be better if you want to drive a new car every few years. Buying may be better if you want to own the vehicle long-term.
Frequently Asked Questions
What is included in the monthly lease payment?
The monthly payment typically includes the principal, interest, and any fees specified in your lease agreement. Additional costs like taxes, registration, and insurance are usually extra.
Can I negotiate the lease terms?
Yes, you can often negotiate the down payment, interest rate, and lease term with the dealer. Some leases also offer special financing options.
What happens at the end of the lease term?
At the end of the lease, you have options to return the vehicle, buy it, or extend the lease. Some leases include a buyout fee if you want to keep the car.