Estimate monthly car lease payments, due at signing, tax or VAT, finance charge, residual value, and total lease cost for USA and UK drivers.
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This tool provides lease payment estimates for informational purposes only. It is not a substitute for professional financial, tax, or legal advice. Actual lease payments, tax treatment, fees, incentives, mileage penalties, and end-of-lease terms vary by lender, dealer, and your personal circumstances. For UK VAT reference see HMRC VAT rates. Always review the formal lease agreement and consult a qualified professional before making decisions.
freeusukcalculator.com
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A lease payment has three parts: depreciation ((capitalized cost − residual value) ÷ term), the finance charge ((cap cost + residual) × money factor), and sales tax. The calculator combines these into your monthly figure.
The money factor is the lease equivalent of an interest rate. Multiply it by 2,400 to get an approximate APR — for example a money factor of 0.00125 is roughly 3% APR.
Residual value is the car's predicted worth at the end of the lease, set by the leasing company. A higher residual means less depreciation to pay for, which lowers your monthly payment.
Leasing usually has lower monthly payments and lets you drive a newer car, but you own nothing at the end. Buying costs more per month but builds equity, so it is typically cheaper over the long run if you keep the car.