Car Lease Calculator

Rocket Auto's car lease calculator can give you an accurate estimate to find out what your car lease payments may be. It also helps to determine how much cash-down is required, the estimated miles for the term of the lease and other factors involved in leasing a car.

Lease Payment Calculator

Your Estimated Lease Payment

$0

/mo.

Breakdown
Amount
Car Price
$0
Down Payment
$NaN
Net Capitalized Cost
+$0
Residual Value
$0
Depreciation
$0
Finance Charge
+$0

Pre-tax Monthly Payment
$0
Sales Tax on Lease Payment
$0
Total Monthly Lease Payment
$0

The key figures that calculate your auto lease payment

The calculator produces a monthly lease payment contains many different factors. Some of the factors can be negotiated, other factors can be set by the lender and you. However, these four factors have the largest impact on your monthly payment:

  • Negotiating sale price of the car
  • Residual value of the car (predicted value at end of lease)
  • Interest rates
  • Length of the lease

Sale price of the car

The sale price of the car is a key factor in determining your monthly cost. A higher sale price will reduce the monthly payment but increase the overall amount you pay for the car. Negotiating a lower purchase price can save you money on your new car lease, as well as putting more cash down at the beginning of your lease can help reduce your total payments.

Residual value

Residual value of the car is an important forecast of cost at the end of your lease. It can be difficult to determine what your future Residual value may be, but having a lower Residual value will increase your monthly payments. Insurance companies offer lower rates if you have a car that they deem less likely to be stolen or vandalized; if you choose to purchase optional comprehensive and collision insurance coverage on your new car, it can also help reduce the Residual value and monthly payment.

Interest rate

The interest rate you pay for a car lease can vary widely depending on the lender and your credit score. Dealerships may offer low rates to help get you into a new leased auto, but these deals require additional fees from selling your old car, above the expected sale price of the vehicle. You should expect higher interest rates if you have lower credit scores. In fact, some car dealerships can increase your interest rate even if you have excellent credit.

Length of the lease

The length of the lease term can be the most expensive factor in your monthly payment. Shorter terms will increase your monthly payment, but they reduce the cost of your car lease.

Other factors that affect what you'll pay each month

How to use our auto lease calculator

With the information above, you can estimate your monthly payment. Plug in the figures that best suit your financial situation and lifestyle. By inputting the different drive-off amounts and seeing how it changes the monthly payment. Though, remember to not put too much money down, because those defeats one of the advantage of leasing, which is to preserve cash flow.

How to use the car lease calculator's results

  • Let's estimate the monthly payment for a midsized economy sedan with the sticker price of $33,000.
  • By checking respected sources, you find that the price of the car is $30,000. Input the price of the sedan.
  • Decide the budget for a down payment, or drive-off fees. We recommend no more than $1,000. Enter that into the down payment field.
  • The Residual value of this particular sedan is average, you can multiply the $30,000 by 0.55 and put the result, $16,500, in the input “Car's Residual Value at End of Lease“.
  • Enter your local state tax. If you're leasing in a different state, enter its sale tax. For this example we'll use 9%.
  • The interest rate that you think you'll qualify for is based on your credit history. If you don't know your credit score, you can estimate or check your credit score. Enter the interest rate as a number, do not use a decimal. In this example, we will use 3%.
  • Enter the lease length that you want. Remember that 36 months is the sweet spot for leasing. For this example, we will use the 36 months.

Result

The results of the calculator, you'll see the monthly lease payment display, which for this example is $NaN. The $NaN price includes the sale taxof $NaN and $NaN in interest.

How to use the car lease calculator's result

The results will help you estimate the cost of the car that you can safely afford. The leasing company will deduct the finance charges and sales tax from your car payment. You'll pay this amount to them each month, in addition to the price of leasing the car. If you make a mistake when using the calculator, don't fret!

Also remember that when you buy a used car with cash or take out a loan for it, you won't have any monthly payments. The source selling it would rather get all their money up front than slowly over time. But if you can afford monthly payments, leasing can give you more choices in cars and keep your monthly expenditures lower than if you bought one outright.

This is just an estimate

This is just an estimate, but it can help you make the best decision possible. The only true way to know how much you can afford is by working with a credit union or dealership leasing company. When you do, they'll give you an accurate car leasing cost estimate based on your specific financial situation and history.

Why lease a car?

There are many reasons why leasing a car makes the most sense. You can drive a newer, nicer car than you could afford to buy with cash. Lease payments are often lower than those of a loan or cash purchase as well.

Leasing is also more flexible than buying and selling cars. If you don't like your lease agreement for any reason, such as your car payment increasing too much or wanting to upgrade before the end of the term, that's not an issue; simply turn in your vehicle and begin leasing something new! This makes it very appealing for people who want to keep up with the latest technology and styles without having to commit themselves to something like a house.

Benefits of auto leasing

Benefits of leasing a car include:

  • Lower monthly payments than a car loan.
  • The ability to drive a more expensive car.
  • Choosing a new car every few years.
  • Not being stuck with a large depreciation hit when you turn in your lease and buy or finance a replacement vehicle.

Cons of Auto Leasing

Cons of leasing a car include:

  • You can't sell your vehicle at the end of the term.
  • Once you turn in your vehicle, you don't have a car to drive.
  • Most leases charge extra fees for excessive mileage and wear and tear.

Frequently Asked Questions