Understanding how we calculate vehicle costs and where our data comes from
At LeaseFinder.ai, we believe in transparency. That's why we're sharing our complete methodology for calculating vehicle costs and the sources of our data. Our goal is to provide the most accurate, comprehensive comparison of vehicle lease costs possible, including energy costs that are often overlooked in traditional lease comparison tools.
This page details how our Total Cost of Ownership (TCO) calculator works, what factors we consider, and how we source and validate our information.
Our TCO calculator considers the following key components to provide a complete picture of what it costs to lease and operate a vehicle:
Capitalized Cost (Cap Cost)
The negotiated vehicle price after any rebates, incentives, or discounts.
Residual Value
The projected value of the vehicle at lease end, typically expressed as a percentage of MSRP.
Money Factor
The lease equivalent of an interest rate. We convert this to APR for easier comparison (Money Factor × 2400 = APR%).
Lease Term
The duration of the lease agreement, typically 24, 36, or 48 months.
Down Payment & Fees
Includes down payment, acquisition fee, disposition fee, and any other upfront costs amortized over the lease term.
Fuel Costs (ICE & Hybrid Vehicles)
Calculated using EPA MPG ratings, regional fuel prices, and user-provided annual mileage.
Electricity Costs (EV & PHEV)
Based on vehicle efficiency (kWh/100 miles), regional electricity rates, and annual mileage.
PHEV Energy Mix
For plug-in hybrids, we calculate cost based on electric range, assuming one full charge per day before switching to fuel.
ZIP Code Adjustment
Energy costs are adjusted based on the user's ZIP code to reflect local gas and electricity prices.
Monthly Total Cost = Monthly Lease Payment + Monthly Energy Cost
Monthly Lease Payment = (Cap Cost - Residual Value) / Lease Term + (Cap Cost + Residual Value) × Money Factor
Monthly Energy Cost (ICE) = (Monthly Miles ÷ MPG) × Fuel Price per Gallon
Monthly Energy Cost (EV) = (Monthly Miles × kWh per Mile) × Electricity Price per kWh
Monthly Energy Cost (PHEV) = [(Daily Electric Miles × Days per Month) × Electricity Cost] + [(Remaining Monthly Miles) × Fuel Cost]
We categorize vehicles based on propulsion type to ensure accurate energy cost calculations:
Traditional internal combustion engine vehicles that run exclusively on gasoline or diesel fuel. Energy costs calculated based on MPG and fuel prices.
Battery electric vehicles that run solely on electricity. Energy costs calculated based on kWh/100mi efficiency and electricity rates.
Plug-in hybrid vehicles that can run on electricity for a limited range before switching to gasoline. Costs based on electric range, MPG, and daily driving patterns.
Hybrid electric vehicles that self-charge but cannot be plugged in. Costs calculated based on improved MPG compared to ICE vehicles.
Mild hybrid vehicles with small electric assistance but primarily gas-powered. Costs calculated with a slight efficiency improvement over standard ICE vehicles.
We pull data from the following sources to ensure our calculations are as accurate as possible:
Data on vehicle MSRP, MPG, kWh/100mi, electric range, and other specifications.
Updated weekly
Regional data on gasoline, diesel, and electricity prices by ZIP code.
Updated daily
Money factors, residual values, and available manufacturer incentives.
Updated monthly
Scheduled maintenance costs by make, model, and vehicle type.
Updated quarterly
To ensure accuracy, we employ the following verification processes:
While we strive for the highest accuracy, there are some limitations and assumptions in our calculations:
Methodology last updated: May 15, 2025
If you have questions about our methodology or suggestions for improvement, please contact us.