Auto Lease Calculator – Estimate Monthly Car Lease Payments
Compare leasing a car with financing a purchase.
About the Auto Lease Calculator
What is the Auto Lease Calculator?
An auto lease calculator compares the monthly payment of leasing a vehicle with financing a purchase of the same car over the same term.
Why use this calculator?
The numbers look similar at first, but leasing leaves you with nothing at the end while buying builds equity. Side-by-side makes the trade-off clear.
How to use it
- Enter the vehicle price and term.
- Enter the residual percentage and money factor for the lease.
- Enter the purchase loan rate and any down payment.
- Compare the two monthly payments and totals.
Formula
Lease = (price − residual) ÷ term + (price + residual) × money factor; purchase = amortized loan payment.
Real-world factors such as mileage limits, fees and resale value are not included.
Frequently Asked Questions
Why is the lease payment usually lower?
You only pay for the depreciated portion plus a finance charge, and you give the car back. Buying pays for the whole car over the term.
Can I buy the car at the end of a lease?
Most leases include a purchase option at the residual value. If the car is worth more than the residual, buying it can be a good deal.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.
Should I make extra payments?
Extra payments reduce principal directly, which shortens the loan and cuts total interest. Many loans have no prepayment penalty, but check your agreement first.
What is APR and how is it different from the interest rate?
The interest rate applies only to the balance. The APR (annual percentage rate) also includes fees and points, so it reflects the true yearly cost of the loan.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.