Lease Calculator

How is a lease calculated?

You might be wondering if there is some kind of difficult formula that the dealers use when they calculate your monthlies. The car leasing secrets truth is that it’s as simple as your ABC’s. You just need to know all the figures that you need for a simple equation.

First, get the depreciation value of a car by subtracting the residual value from the cap cost.

You divide the difference by the number of months you plan to lease a car.

Then, for the monthly finance charge, add the residual value and the cap cost and then multiply that by the money factor that can be given to you by you bank or finance company.

The result is the monthly finance charge.

You need to obtain quotation from a local insurance company for necessary insurance coverage of third party, comprehensive insurance and collision damage waiver.

Add the monthly depreciation, the monthly finance charge, the monthly insurance cost, and estimated cost of maintenance. That shall make up the monthly car payment. This may vary across different vehicles.