🔑 Auto Lease Calculator

How Lease Payments Are Calculated

Depreciation: (MSRP − Residual) ÷ Lease Term months. Finance Charge: (MSRP + Residual) × Money Factor. Monthly Payment = Depreciation + Finance Charge.

Lease vs Buy — Which is Better?

• Lease: Lower monthly payments, drive new car every few years, no resale hassle. But you don't own it and have mileage limits.
• Buy: You own the car, no mileage limits, build equity. Higher EMI but no end-of-lease costs.

What is Residual Value?

Residual value is the estimated worth of the vehicle at the end of the lease term. A higher residual value means lower monthly payments because you're only paying for a smaller portion of depreciation.