The use of an auto lease calculator can be extremely helpful in determining how much you ought to be paying for a lease. Figuring out what a fair monthly payment is will tell you whether or not that “special” is really a special, and is great for double-checking the math presented at the leasing dealership. If you’re thinking about leasing a car and would like to calculate your auto lease payments, here is how you can do it online:
Online Lease Payment Calculators
There are many convenient calculators online which will calculate your auto lease payments, given sufficient information. You can find a calculator online by simply using your favorite search engine to find an “auto lease payment calculator.” In order to accurately calculate your lease payment, you’ll need to supply the following information:
MSRP – MSRP stands for Manufacturer’s Suggested Retail Price. This price is the price of the car plus equipment added by the dealer, and is located on the vehicle’s window sticker. MSRP does not cover tax, additional dealer fees, or non-equipment options.
Base Capitalized Cost – This is the price which is negotiated down from MSRP. Again, it does not include additional fees such as tax or non-equipment options.
Additional Costs – These are costs beyond the base capitalized cost: taxes, dealer or bank fees, insurance costs, non-equipment options, extended warranty, et cetera. If you are trading in a vehicle for a lease and there is still money to be paid on it, add the remaining balance to this number. If you are paying any of these costs upfront, rather than including them in the lease package, subtract the amount you’re paying upfront from this number.
Capital Cost Reductions – There are three parts to capital cost reductions: your down payment on the lease, any trade-in credit you may have, and any available rebates from the vehicle’s manufacturer.
Lease-end Residual Value – This is the estimated amount which your vehicle will be worth by the time the lease ends. This value is specific to your vehicle make, model, and trim, and can be found online or by asking the dealer.
Interest Rate – This is the percentage interest that you are being charged by the financing company. It may also be called a “Money Factor.”
Lease Term – This is the number of months that you are planning on leasing your vehicle. Usually, this number falls between 24 and 48.
Sales Tax – This number is city-specific, and is the percentage sales tax you will pay on your vehicle.
Once you’ve collected these values and plugged them into an online calculator, it will return your ideal monthly lease payment. Calculating what your monthly auto lease payment should be before visiting a dealership is a quick and easy way to ensure you’re getting a fair deal.