Car Lease Calculator

Car lease calculators provide estimated lease payments on a vehicle based on specific pricing and financing information. There are several versions of car lease calculators available online. Most show the total and monthly lease payment amounts as well as a break down of individual costs, including taxes and fees. Consumers use car lease calculators to determine if they can afford a particular lease, and sometimes to compare various leasing programs. Car lease calculators can make the financing process easier by giving customers an understanding of the cost of a lease before visiting a dealership.

Car lease calculations are based on costs associated with the vehicle and the lease. The industry-standard formula uses capitalized cost, residual value, money factor and lease terms to determine the monthly payment on a car lease. Capitalized cost refers to what is being financed in the lease, including the price negotiated with the dealer and any add-on fees or taxes. Residual value is the predetermined value of a vehicle at the end of a lease. Money factor describes the amount of finance charges included in a lease. And lease term is the length of the lease, usually stated in months.

Many websites feature different forms of car lease calculators. The tool featured on automotive education site Edmunds uses your zip code to automatically generate the average sales price and manufacture incentives of the vehicle you're looking to lease. Other sites require you to input information like a car's MSRP (manufacturer's suggested retail price) and the sales tax in your state. Compare the variety of online car lease calculators to find one that has the features and information you need.