# Calculate Your Own Car Lease Payment

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**10,315****Calculate Your Own Car Lease Payment**

There are several ways to estimate your car lease payment, including setting up a spreadsheet to do the work for you.

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11But the dealer offers $320/mo x 36 mo w/ $2500 down. With what looks like a 62% residual value.

What gives?

25251Expressed another way, if a simple amortization calculation is made (on an HP 12C calculator) using 36 months, 3% interest and a monthly payment of $232.77 (i.e. the 191.39 for the depreciation + the 41.38 for the interest), the present value being financed is $8,004, which is not the same as the $6,890 depreciation in your line 6. Why is there that difference? Apparently the financing is based on more than just the depreciation?

So where am I going wrong? What am I missing in the explanation?

Maybe this is "just the way they do it" but it would help to understand the concept/rationale better.

Thanks very much.

Baylis

1So, in the case above, the amount multiplied by the money factor would be $26,220. Does this work?

11321"Gentlemen/Ladies -- Why, in lines 9 - 11 of the calculation, are the net capitalized cost (20,000) and the residual (13,110) added to produce 33,110? What is the concept of applying the money factor to that large number?"

251,080The two numbers are added, because the amount subject to finance charges is an

averageof those two numbers...You don't have to divide by 2 to get the averages, because that part of the calculation is accounted for in the money factor.

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Edmunds Moderator9251,080You pay finance charges on an average of the net cap and the residual. To get an average, you add the two numbers together, then divide by 2. The division by 2 is accounted for already within the money factor.

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Edmunds Moderator91251,080There is MSRP (that's the bottom line of the sticker, including destination)

And, there is the selling price...

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Edmunds Moderator31250,351Edmunds Price Checker

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MODERATOR2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige

33413250,351What payment are you expecting to see?

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33251,080Edmunds Lease Calculator

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Edmunds Moderator4What if someone pays upfront? In this case, if someone pays $6,890 upfront, one doesn't need to consider the MF, right?

So it will be $6,890 + Tax? and no additional?

What would be the disadvantage of paying upfron?

Thank you

250,351But, the calculations are the same, then summed for the entire lease term and paid up front.

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4Thank you.

250,351Edmunds Lease Calculator

MODERATOR2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige

4MSRP 38,188

Discount savings: -4,311

Vehicle sell:(38,188): 67%

Access595

Document Prep Fee: 700

License/title: 79

Acquisition fee: 700

Tax on collected Items ( no idea what this is?): 294.48

Down/cash cap reduction: -3,113.30

Rebate: -500

Net cap: 32,632.41

--------

Base payment 357.56

Monthly tax: 29.14

24 mo payment: 386.70

-----

Down/cash reduction: 3,113.30

1st payment: 386.70

Due on delivery: 3,500

----

Rate: 0.0011

Annual miles: 12,000

Residual% (38,188): 67%

Residual amount: 35,585.96

Tax:8.15%

This is a quote for 2016 Lexus NX200t, Las Vegas.

I would appreciate your feedback greatly! Thanks!

251,080$595 for accessories? Do you know what that is for?

$700 doc prep fee? Seems excessive.

I calculate the same payment.

If you only paid the first payment at lease signing, the payment would be $525/mo. (the true monthly cost of the lease)

Have you thought about a little longer term? You could save some money.

The savings is actually higher, because you amortize your upfront money over more months.

27/12 payment: $366.35/mo. (66% residual)

36/12 payment: $358.07/mo. (60% residual)

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Edmunds Moderator21251,080The math on a purchase is different, and obscures that, somewhat.

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Edmunds Moderator4251,080Step #1 is to find out if you actually have any equity.

Call Kia Finance for your payoff

Ask in this discussion for the value of your vehicle:

https://forums.edmunds.com/discussion/1212/general/x/real-world-trade-in-values#latest

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Edmunds Moderator350Thank you.

250,351Edmunds Lease Calculator

MODERATOR2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige

10250,351But, it also depends on what brand you are interested in.

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MODERATOR2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige

10251,080Money factor depends on the make.

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Edmunds Moderator10251,080Edmunds Lease Calculator

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Edmunds Moderator1251,080averageof the adjusted CAP and residual. Rather than add the two numbers, and divide by 2, the adjustment is made when calculating the money factor.Edmunds Lease Calculator

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Edmunds Moderator211251,080It is all just math.

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