How Do I Calculate A Lease Payment

Calculate your monthly lease payment with precision. Enter your vehicle details below to get instant results.

Comprehensive Guide to Calculating Lease Payments

Introduction & Importance: Understanding Lease Payments

Leasing a vehicle has become an increasingly popular alternative to traditional car purchasing, accounting for nearly 30% of all new vehicle transactions in the United States according to Federal Reserve data. Unlike buying a car where you own the asset outright, leasing allows you to essentially “rent” a vehicle for a predetermined period (typically 24-48 months) with the option to purchase it at the end of the term.

Understanding how lease payments are calculated is crucial for several reasons:

• Financial Planning: Knowing the exact components of your lease payment helps you budget more effectively and avoid unexpected costs.
• Negotiation Power: Dealerships often have flexibility with certain lease terms. Understanding the calculation gives you leverage to negotiate better terms.
• Avoiding Overpayment: Many lessees unknowingly pay hundreds or thousands more than necessary because they don’t understand how the numbers work.
• Comparison Shopping: Being able to calculate payments yourself allows you to accurately compare lease offers from different dealerships.

The lease payment calculation involves several key components that we’ll explore in detail throughout this guide. At its core, your monthly lease payment consists of:

1. Depreciation Fee: The portion of the vehicle’s value that you “use up” during the lease term
2. Finance Charge: Essentially the interest you pay on the lease (expressed as a “money factor”)
3. Taxes and Fees: Various state/local taxes and lease-specific fees

How to Use This Lease Payment Calculator

Our interactive lease payment calculator is designed to give you the most accurate estimate of your potential lease payments. Here’s a step-by-step guide to using it effectively:

1. Enter the Vehicle Price:

   This is the manufacturer’s suggested retail price (MSRP) or the negotiated price of the vehicle. For the most accurate results, use the actual price you’ve negotiated with the dealer, not just the sticker price. Many dealers are willing to negotiate the capitalized cost (the price used for lease calculations) by 5-10% below MSRP.

2. Specify Your Down Payment:

   This includes any cash you’re putting down at signing plus the value of any trade-in vehicle. While larger down payments reduce your monthly payment, financial experts generally recommend keeping lease down payments to no more than 20% of the vehicle’s value to minimize risk if the car is stolen or totaled early in the lease term.

3. Input Trade-In Value:

   If you’re trading in a vehicle, enter its estimated value here. Be sure to get multiple appraisals as trade-in values can vary significantly between dealers. Websites like Kelley Blue Book (kbb.com) can provide reasonable estimates.

4. Select Lease Term:

   Choose your desired lease length in months. The most common terms are 36 months (3 years), though 24 and 48 month terms are also available. Longer terms generally mean lower monthly payments but may come with higher overall costs due to additional finance charges.

5. Enter Interest Rate:

   This is expressed as an annual percentage rate (APR). Lease interest rates are typically lower than loan rates, often ranging from 2% to 6% for well-qualified lessees. The dealer may quote this as a “money factor” (e.g., 0.0025 which equals 6% APR).

6. Specify Residual Value:

   This is the vehicle’s estimated value at the end of the lease term, expressed as a percentage of MSRP. Residual values are set by the leasing company (often the manufacturer’s finance arm) and typically range from 45% to 60% of MSRP depending on the vehicle and lease term. Higher residual values result in lower monthly payments.

7. Input Sales Tax Rate:

   Enter your state and local sales tax rate. Some states tax the full capitalized cost upfront, while others tax only the monthly payments. Our calculator assumes the more common monthly payment taxation method.

8. Add Acquisition Fee:

   This is a fee charged by the leasing company to initiate the lease, typically ranging from $395 to $895. Some dealers may be willing to waive or reduce this fee as part of negotiations.

After entering all your information, click “Calculate Lease Payment” to see your estimated monthly payment along with a detailed breakdown of all components. The calculator also generates a visualization showing how your payment is allocated across depreciation, finance charges, and taxes.

Lease Payment Formula & Methodology

The lease payment calculation involves several mathematical components that work together to determine your monthly obligation. Here’s the complete methodology our calculator uses:

1. Capitalized Cost Calculation

The capitalized cost (often called “cap cost”) is essentially the amount being financed through your lease. It’s calculated as:

Capitalized Cost = Vehicle Price - Down Payment - Trade-In Value + Acquisition Fee
      

2. Residual Value Determination

The residual value is set by the leasing company and represents the vehicle’s expected worth at lease end. It’s calculated as:

Residual Value = Vehicle Price × (Residual Percentage / 100)
      

3. Depreciation Amount

This represents how much value the vehicle loses during your lease term:

Depreciation Amount = Capitalized Cost - Residual Value
      

4. Monthly Depreciation Charge

This is the portion of your payment that covers the vehicle’s depreciation:

Monthly Depreciation = Depreciation Amount / Lease Term (in months)
      

5. Money Factor Conversion

The interest rate you enter is converted to a money factor (the lease equivalent of an interest rate):

Money Factor = Interest Rate / 2400
      

6. Monthly Finance Charge

This calculates the interest portion of your payment:

Monthly Finance Charge = (Capitalized Cost + Residual Value) × Money Factor
      

7. Monthly Payment Before Tax

Combine the depreciation and finance charges:

Monthly Payment (Pre-Tax) = Monthly Depreciation + Monthly Finance Charge
      

8. Sales Tax Calculation

Most states apply sales tax to lease payments (though some tax the full capitalized cost upfront):

Monthly Sales Tax = Monthly Payment (Pre-Tax) × (Sales Tax Rate / 100)
      

9. Final Monthly Payment

Add the tax to get your total monthly obligation:

Total Monthly Payment = Monthly Payment (Pre-Tax) + Monthly Sales Tax
      

Our calculator performs all these calculations instantly and displays both the final payment amount and a breakdown of each component. The visualization helps you understand exactly where your money is going each month.

Real-World Lease Payment Examples

To better understand how lease payments work in practice, let’s examine three real-world scenarios with different vehicles and terms.

Example 1: Luxury Sedan Lease

• Vehicle: 2023 BMW 5 Series
• MSRP: $58,900
• Negotiated Price: $55,000
• Down Payment: $4,000
• Trade-In Value: $12,000 (2018 Honda Accord)
• Lease Term: 36 months
• Interest Rate: 3.9%
• Residual Value: 58%
• Sales Tax: 8.25%
• Acquisition Fee: $795

Calculated Payment: $487.22/month

Breakdown:

• Capitalized Cost: $47,795
• Residual Value: $33,322
• Depreciation: $14,473 ($402.03/month)
• Finance Charge: $65.19/month
• Tax: $43.00/month

Analysis: This example shows how a substantial trade-in value can significantly reduce monthly payments. The high residual value (typical for luxury vehicles) also helps keep payments manageable despite the high initial price.

Example 2: Compact SUV Lease

• Vehicle: 2023 Honda CR-V
• MSRP: $32,500
• Negotiated Price: $30,800
• Down Payment: $2,500
• Trade-In Value: $0
• Lease Term: 36 months
• Interest Rate: 4.5%
• Residual Value: 54%
• Sales Tax: 6.5%
• Acquisition Fee: $695

Calculated Payment: $342.88/month

Breakdown:

• Capitalized Cost: $29,995
• Residual Value: $17,550
• Depreciation: $12,445 ($345.69/month)
• Finance Charge: $37.19/month
• Tax: $24.00/month

Analysis: This scenario demonstrates a more typical lease for a mainstream vehicle. The lower interest rate and higher residual percentage (common for Honda vehicles) result in very affordable monthly payments.

Example 3: Electric Vehicle Lease

• Vehicle: 2023 Tesla Model 3
• MSRP: $48,990
• Negotiated Price: $46,500
• Down Payment: $4,500
• Trade-In Value: $8,000
• Lease Term: 36 months
• Interest Rate: 3.0%
• Residual Value: 62% (high for EVs due to strong used market)
• Sales Tax: 0% (some states offer EV tax exemptions)
• Acquisition Fee: $0 (Tesla often waives this)

Calculated Payment: $312.50/month

Breakdown:

• Capitalized Cost: $34,000
• Residual Value: $29,970
• Depreciation: $4,030 ($111.94/month)
• Finance Charge: $29.56/month
• Tax: $0.00/month

Analysis: This example highlights several advantages of leasing electric vehicles: high residual values (due to strong used EV demand), potential tax incentives, and sometimes waived fees. The extremely low depreciation results in unusually low monthly payments for a premium vehicle.

Lease Payment Data & Statistics

The leasing market has evolved significantly over the past decade, with changing consumer preferences, economic conditions, and vehicle technology all playing roles. Below we present key data and comparative statistics to help you understand current lease trends.

Average Lease Payments by Vehicle Category (2023 Data)

Vehicle Category	Average MSRP	Average Lease Payment	Average Lease Term	Average Down Payment	% of MSRP as Down Payment
Subcompact Car	$22,500	$245	36 months	$1,800	8.0%
Compact Car	$26,800	$289	36 months	$2,200	8.2%
Midsize Car	$32,400	$356	36 months	$2,800	8.6%
Luxury Car	$58,700	$598	36 months	$4,700	8.0%
Compact SUV	$30,200	$342	36 months	$2,500	8.3%
Midsize SUV	$38,500	$438	36 months	$3,200	8.3%
Luxury SUV	$65,300	$689	36 months	$5,200	8.0%
Pickup Truck	$42,800	$475	36 months	$3,500	8.2%
Electric Vehicle	$52,100	$488	36 months	$4,200	8.1%

Source: U.S. Department of Energy Vehicle Technologies Office and Experian Automotive Q2 2023 data

Lease vs. Purchase Comparison (5-Year Cost Analysis)

Metric	Leasing (36-month term)	Purchasing (60-month loan)	Difference
2023 Honda Accord LX
Initial Cost (Down + Monthly × Term)	$10,800	$12,000	Lease saves $1,200
5-Year Total Cost (including 2nd lease)	$21,600	$27,500	Lease saves $5,900
Miles Driven (5 years)	60,000	75,000	Purchase allows 15k more miles
Maintenance Costs (5 years)	$1,200 (covered under warranty)	$3,800	Lease saves $2,600
End-of-Term Value	$0 (walk away)	$12,000 (trade-in value)	Purchase has $12k asset
Net 5-Year Cost	$21,600	$15,500	Purchase saves $6,100
2023 Tesla Model Y Long Range
Initial Cost (Down + Monthly × Term)	$14,400	$18,000	Lease saves $3,600
5-Year Total Cost (including 2nd lease)	$28,800	$42,000	Lease saves $13,200
Miles Driven (5 years)	60,000	75,000	Purchase allows 15k more miles
Maintenance Costs (5 years)	$800	$2,200	Lease saves $1,400
End-of-Term Value	$0 (walk away)	$24,000 (trade-in value)	Purchase has $24k asset
Net 5-Year Cost	$28,800	$18,000	Purchase saves $10,800

Note: Assumptions include 12,000 miles/year for leases, 15,000 for purchases, 5% annual vehicle depreciation for owned vehicles, and average maintenance costs from AAA’s Your Driving Costs study.

Key takeaways from this data:

• Leasing generally has lower upfront and monthly costs, but you don’t build equity
• Purchasing costs more initially but can be cheaper long-term if you keep the vehicle past the loan term
• Electric vehicles show more dramatic cost differences due to higher residual values and lower maintenance costs
• Mileage limitations are a major factor – exceeding lease mileage can add $0.15-$0.30 per mile
• Luxury vehicles tend to have better lease values due to higher residual percentages

Expert Tips for Getting the Best Lease Deal

After helping thousands of consumers navigate lease agreements, we’ve compiled these pro tips to help you secure the best possible lease terms:

Before You Visit the Dealer

• Check Your Credit Score: Lease approvals and interest rates are heavily credit-dependent. Aim for a score above 720 for the best rates. You can check your score for free at AnnualCreditReport.com.
• Research Residual Values: Use resources like Edmunds.com to find the residual values for your desired vehicle. Higher residuals mean lower payments.
• Know the Money Factor: Dealers often quote this instead of APR. To convert: Money Factor × 2400 = APR. A money factor of 0.0025 = 6% APR.
• Understand Lease Fees: Familiarize yourself with acquisition fees (typically $395-$895), disposition fees (if you don’t buy the car at lease end), and excess wear-and-tear charges.
• Calculate Your Budget: Experts recommend your total vehicle expenses (lease payment + insurance + fuel) shouldn’t exceed 15% of your gross monthly income.

At the Dealership

1. Negotiate the Capitalized Cost: This is the price used for lease calculations. Aim to negotiate this down 5-10% below MSRP, just like you would when buying.
2. Ask About Multiple Security Deposits: Some lenders offer lower money factors if you make multiple (often refundable) security deposits.
3. Consider Lease Assumption: Websites like LeaseTrader.com allow you to take over someone else’s lease, often with better terms than starting new.
4. Watch for “Lease Here, Pay Here” Scams: Some dealers advertise impossibly low payments but load the contract with hidden fees. Always review the full lease agreement.
5. Ask About Gap Insurance: This covers the difference between what you owe and what the car is worth if it’s totaled. Many leases include this, but confirm the coverage amount.

During Your Lease

• Track Your Mileage: Use a mileage tracking app to avoid expensive overage charges (typically $0.15-$0.30 per mile).
• Maintain the Vehicle: Document all maintenance and keep receipts. Excessive wear-and-tear can cost $300-$500 at lease end.
• Consider Early Termination Options: Some leases allow you to terminate early by paying a fee (often 50% of remaining payments).
• Watch for Lease-Pull-Ahead Offers: Dealers sometimes offer incentives (like waiving remaining payments) to get you into a new lease early.
• Plan for Lease End: Start researching your options (buy, return, or lease another vehicle) about 6 months before your lease expires.

At Lease End

1. Get a Pre-Inspection: Most leasing companies offer a free inspection 60-90 days before lease end to identify potential charges.
2. Check Buyout Options: Compare the residual value to the car’s market value. If the residual is lower, buying and reselling could be profitable.
3. Negotiate Excess Charges: If you have excess mileage or wear, ask if they’ll waive some fees if you lease another vehicle from them.
4. Transfer the Lease: If you can’t afford the buyout but want to keep the car, some companies allow lease transfers to qualified buyers.
5. Review Your Credit: Successful lease completion can boost your credit score, making you eligible for better rates on your next vehicle.

Interactive Lease Payment FAQ

What’s the difference between a lease and a loan?

A lease is essentially a long-term rental where you pay for the vehicle’s depreciation during your usage period, plus finance charges. With a loan, you’re purchasing the vehicle and paying off the full amount plus interest over time. Key differences:

• Ownership: With a lease, you don’t own the vehicle (unless you exercise the purchase option at lease end). With a loan, you own the car once the loan is paid off.
• Monthly Payments: Lease payments are typically 30-60% lower than loan payments for the same vehicle.
• Mileage Limits: Leases have strict mileage limits (usually 10k-15k miles/year), while owned vehicles have no restrictions.
• Wear and Tear: Leases charge for excessive wear, while owned vehicles can be modified or driven without such concerns.
• Term Length: Leases typically run 24-48 months, while loans often go 60-72 months.
• Tax Benefits: Business lessees can often deduct lease payments as business expenses, while loan interest may or may not be deductible.

According to the Federal Reserve, about 25% of new vehicles are leased, with the percentage higher for luxury vehicles (often 40-50%).

How does the money factor affect my lease payment?

The money factor is the lease equivalent of an interest rate, but expressed in a different format. It directly impacts your monthly finance charge. Here’s how it works:

1. Conversion: Money Factor × 2400 = Equivalent APR. For example, a money factor of 0.0025 = 6% APR.
2. Calculation: Your monthly finance charge is calculated as: (Capitalized Cost + Residual Value) × Money Factor
3. Impact: A lower money factor means lower monthly payments. Even small differences can add up over the lease term.

For a $30,000 vehicle with a $15,000 residual:

• Money factor 0.0025 (6% APR): $33.75 monthly finance charge
• Money factor 0.0030 (7.2% APR): $40.50 monthly finance charge
• Difference: $6.75/month or $243 over 36 months

Tips for getting the best money factor:

• Check your credit score – better credit gets better money factors
• Compare offers from multiple dealers (money factors can vary)
• Ask about “multiple security deposit” programs that can lower your money factor
• Consider manufacturer-subvented leases (special low-rate offers)

What happens if I exceed the mileage limit on my lease?

Exceeding your lease’s mileage limit can be one of the most expensive mistakes lessees make. Here’s what you need to know:

Typical Mileage Allowances and Charges:

Lease Term	Standard Mileage Allowance	Typical Over-Mileage Charge	Example Cost for 5,000 Extra Miles
24 months	24,000-36,000 miles	$0.15-$0.30 per mile	$750-$1,500
36 months	36,000-45,000 miles	$0.15-$0.25 per mile	$750-$1,250
48 months	48,000-60,000 miles	$0.10-$0.20 per mile	$500-$1,000

How to Avoid Excess Mileage Charges:

• Negotiate Higher Mileage Upfront: You can often purchase additional miles at lease signing for $0.05-$0.10 per mile (much cheaper than paying at lease end).
• Track Your Mileage: Use a mileage tracking app or the car’s trip computer to monitor your usage.
• Consider a Longer Term: If you drive a lot, a 48-month lease with higher mileage limits might be cheaper than a 36-month lease with overage charges.
• Lease a Used Vehicle: Some dealers offer used vehicle leases with higher mileage allowances.
• Purchase the Vehicle: If you’re significantly over, buying the car at lease end might be cheaper than paying the overage fees.

What If You Can’t Avoid the Charges?

If you know you’ll have excess miles, you have a few options:

• Negotiate with the leasing company – they may reduce the per-mile charge if you lease another vehicle from them
• Look for lease assumption websites where someone might take over your lease (with the excess miles)
• Check if your insurance covers excess mileage charges in case of total loss

Can I negotiate the residual value on a lease?

The residual value is typically set by the leasing company (usually the manufacturer’s finance arm) and is generally not negotiable in the same way as the vehicle price. However, there are some important nuances to understand:

How Residual Values Are Determined:

• Set by professional appraisers based on historical depreciation data
• Expressed as a percentage of the vehicle’s MSRP (e.g., 55% after 36 months)
• Published in advance for each make/model/term combination
• Higher residuals mean lower monthly payments

When You Might Influence the Residual:

1. Special Lease Programs: Manufacturers sometimes offer “subvented” leases with artificially high residuals to make payments more attractive.
2. End-of-Term Purchase: If the actual market value is higher than the residual at lease end, you could buy the car and immediately sell it for a profit.
3. Lease Transfer: If residuals are rising (common with some EVs), transferring your lease to someone who wants to buy the car could be advantageous.
4. Extended Terms: Some leasing companies offer longer terms (48-60 months) with higher residuals.

How to Find the Best Residual Values:

• Luxury brands (BMW, Mercedes, Lexus) often have the highest residuals (55-65%)
• Japanese brands (Toyota, Honda, Subaru) typically have strong residuals (50-60%)
• Electric vehicles currently have volatile residuals – some models retain value exceptionally well
• Trucks and SUVs generally have better residuals than sedans

While you can’t typically negotiate the residual value directly, you can:

• Shop for vehicles with naturally high residuals
• Look for manufacturer lease specials with enhanced residuals
• Consider the residual when deciding whether to buy the vehicle at lease end

What fees should I expect when leasing a vehicle?

Leasing comes with several fees that can add significantly to your total cost. Here’s a comprehensive breakdown of typical lease fees:

Upfront Fees (Due at Lease Signing):

• Acquisition Fee: $395-$895 (sometimes called a “bank fee” – charged by the leasing company)
• Security Deposit: Typically equal to one month’s payment (sometimes waived for well-qualified lessees)
• First Month’s Payment: Often required upfront
• Documentation Fee: $100-$500 (charged by the dealer)
• Title and Registration Fees: Varies by state ($50-$300)
• Taxes: Either on the full capitalized cost (in some states) or on each monthly payment

Ongoing Fees:

• Monthly Payments: Your regular lease payment
• Sales Tax: Applied to each monthly payment in most states
• Maintenance Costs: While often covered under warranty, you’re responsible for oil changes, tire rotations, etc.
• Gap Insurance: Often required (sometimes included in the lease) – $200-$600 per year

End-of-Lease Fees:

• Disposition Fee: $300-$500 if you don’t purchase the vehicle
• Excess Mileage: $0.15-$0.30 per mile over the limit
• Excess Wear and Tear: Typically $300-$500 for significant damage
• Early Termination Fee: If you end the lease early, often equal to remaining payments

How to Minimize Lease Fees:

1. Negotiate the acquisition fee – some dealers will reduce or waive it
2. Ask about multiple security deposits (can lower your money factor)
3. Check if your insurance covers gap coverage (avoid double paying)
4. Get a pre-inspection before lease end to avoid surprise wear-and-tear charges
5. Consider buying the vehicle at lease end to avoid disposition fees
6. Watch for “fee packing” where dealers add unnecessary charges

Always ask for a complete fee breakdown before signing. The Federal Trade Commission requires dealers to disclose all fees in the lease agreement.

Is it better to lease or buy a car?

The lease vs. buy decision depends on your personal financial situation, driving habits, and preferences. Here’s a detailed comparison:

When Leasing Might Be Better:

• You like driving new cars every 2-4 years
• You want lower monthly payments
• You don’t want to deal with selling/trading in used cars
• You drive fewer than 15,000 miles per year
• You want to avoid unexpected repair costs (most leases are under warranty)
• You can claim the lease as a business expense
• You’re concerned about rapid depreciation (common with EVs and luxury cars)

When Buying Might Be Better:

• You drive more than 15,000 miles per year
• You want to customize or modify your vehicle
• You plan to keep the car for more than 5 years
• You want to build equity in an asset
• You have concerns about lease restrictions (pets, smoking, etc.)
• You want the flexibility to sell the car at any time
• You have poor credit (buying may be easier to qualify for)

Financial Comparison (5-Year Cost for $30,000 Vehicle):

Factor	Leasing (Two 36-month leases)	Buying (60-month loan)
Down Payment	$3,000 × 2 = $6,000	$3,000
Monthly Payments	$350 × 60 = $21,000	$550 × 60 = $33,000
Maintenance Costs	$1,200 (covered under warranty)	$3,800
Disposition Fees	$350 × 2 = $700	$0
Vehicle Value at End	$0	$12,000 (trade-in value)
Total 5-Year Cost	$28,900	$26,800

Key considerations:

• Leasing is almost always more expensive long-term if you keep leasing new cars
• Buying becomes cheaper if you keep the car for 7+ years
• Leasing protects you from depreciation risk
• Your annual mileage is the single biggest factor in the decision
• Tax implications can significantly affect which option is better

For most consumers, the decision comes down to:

1. Can you afford the higher monthly payments of buying?
2. Do you want the flexibility to change cars frequently?
3. Are you comfortable with the mileage and condition restrictions of leasing?
4. Do you want to own an asset at the end of the term?

How does leasing an electric vehicle differ from a gas car?

Leasing an electric vehicle (EV) has several unique aspects compared to leasing a traditional gas-powered car. Here are the key differences:

Advantages of Leasing an EV:

• Federal Tax Credit: The $7,500 federal tax credit for new EVs often gets passed to the lessee as a capitalized cost reduction, lowering monthly payments.
• Lower Maintenance Costs: EVs have fewer moving parts, so maintenance costs are typically 30-50% lower than gas cars.
• Higher Residual Values: Many EVs currently have strong residual values due to high used EV demand (though this varies by model).
• Technology Access: Leasing allows you to upgrade to newer battery technology every few years.
• State Incentives: Many states offer additional EV incentives that can reduce lease costs.
• No Gas Costs: While not part of the lease payment, the fuel savings (often $100+/month) effectively reduce your total transportation costs.

Disadvantages of Leasing an EV:

• Battery Degradation Concerns: Some lessees worry about battery capacity loss, though most EVs lose only 1-2% range per year.
• Charging Infrastructure: If your home charging situation changes, you might face challenges.
• Limited Model Availability: Not all EVs are available for lease, and some have long wait times.
• Mileage Considerations: High-mileage drivers might find EV leases restrictive due to charging time for long trips.
• Insurance Costs: Some EVs have higher insurance premiums that could offset fuel savings.

Key EV Lease Considerations:

1. Battery Warranty: Most EV batteries have 8-year/100,000-mile warranties that cover the entire lease term.
2. Charging Costs: Some leases include free charging credits (e.g., Tesla’s Supercharger credits).
3. Residual Value Risk: EV residuals can be volatile. Some models (like early Nissan Leafs) had very low residuals, while others (like Teslas) have held value well.
4. Tax Credit Eligibility: Confirm whether the $7,500 credit is being applied to your lease (it should be for most manufacturer leases).
5. End-of-Lease Options: Some EV leases offer attractive purchase options if the residual is below market value.

EV vs. Gas Car Lease Comparison (36-month term):

Factor	Electric Vehicle (e.g., Tesla Model 3)	Gas Car (e.g., Toyota Camry)
Monthly Payment	$399	$349
Fuel/Electricity Cost (monthly)	$40	$120
Maintenance Cost (annual)	$100	$500
Total 3-Year Cost	$16,044	$17,280
Tax Credit Benefit	$7,500 (included in payments)	$0
Net 3-Year Cost	$8,544	$17,280

Note: This comparison assumes 12,000 miles/year, $0.12/kWh electricity, and $3.50/gallon gas prices. Actual costs will vary.

For many consumers, leasing an EV can be significantly cheaper than leasing a comparable gas car when factoring in fuel savings, maintenance savings, and tax credits. However, the upfront costs (like home charger installation) should also be considered.