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The lower the money factor, the less interest you'll pay over your lease term. Generally, a money factor of 0.0025 and below (the equivalent of 6% APR) is considered a good rate.

By subtracting the residual value (or buyout price) from the current market value you can determine how much equity you have in your leased car. If the number is positive, it might be a good idea to purchase your leased car and either keep it or sell it.

For example, your car's residual value is $20,000, and you owe six more payments of $500. Your buyout price would be about $23,000. If your state taxes auto sales ? most do ? add that amount to your total. Your lender may charge additional fees, such as a purchase option fee that is levied if you decide to buy the car.

Finance Fee = ( Net Cap Cost + Residual ) × Money Factor It's simply a way of calculating the average amount financed without using complicated constant-yield annuity business formulas (for more details, click here). This is the method used by all lease companies and dealers.

Here are some simple tips to follow to calculate your car lease buyout amount: Determine the residual value of the car. ... Look up the car's market value. ... Compare the car's residual value to its market value. ... Calculate additional taxes and fees.

How much is a lease for a $45,000 car? Using our calculator, we input a $5,000 down payment, an assumed $25,000 residual value, an interest rate of 7% and a term of 36 months (three years). It resulted in monthly payment of $606 before taxes.

Look for a ?buyout amount? or ?payoff amount? that will be listed on your monthly leasing statement. This buyout amount is calculated by adding up the residual value of your vehicle at the beginning of the lease, the total remaining payments, and possibly a Toyota lease buyout fee (depending on the leasing company).