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Lease Calculator

Estimate a monthly car lease payment the way dealers calculate it. Enter the MSRP, the price you negotiated, the residual value, your down payment, the term, the interest rate and sales tax. The result splits the payment into depreciation, finance charge and tax.

Quick examples
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Percent of MSRP the car is worth at lease end — set by the leasing company.

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If you were quoted a money factor, multiply it by 2,400.

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Your numbers stay in your browser. Nothing is uploaded.
Monthly lease payment$471.97
Depreciation part
$308.89
Finance charge part
$132.20
Sales tax
$30.88
Total lease cost
$18,990.74
Residual value
$20,880.00
Money factor
0.0025
What makes up the payment
  • Depreciation
  • Finance charge
  • Sales tax

Saved setups

Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.

    Your recent calculations

    Results you calculate here are kept on this device so you can come back to them.

      Formula

      Adjusted capitalized cost = negotiated price − down payment and trade-in
      Residual value = MSRP × residual %
      Depreciation fee = (adjusted cap cost − residual value) ÷ term in months
      Finance fee = (adjusted cap cost + residual value) × money factor, with money factor = APR ÷ 2,400
      Monthly payment = (depreciation fee + finance fee) × (1 + sales tax rate)

      How to use it

      1. Enter the sticker price and the price you have negotiated.
      2. Enter the residual percentage and the term from the lease offer.
      3. Enter the APR, or multiply the quoted money factor by 2,400.
      4. Add your down payment and local sales tax to see the payment and total cost.

      Worked examples

      A $36,000 MSRP car bought at $34,000, 58% residual, $2,000 down, 36 months at 6% APR with 7% tax

      Monthly lease payment
      $471.97
      Depreciation part
      $308.89
      Finance charge part
      $132.20
      Sales tax
      $30.88
      Total lease cost
      $18,990.74
      Residual value
      $20,880.00
      Money factor
      0.0025

      A $30,000 car at sticker, 60% residual, nothing down, 36 months at 4.8% APR with no sales tax

      Monthly lease payment
      $429.33
      Depreciation part
      $333.33
      Finance charge part
      $96.00
      Sales tax
      $0.00
      Total lease cost
      $15,456.00
      Residual value
      $18,000.00
      Money factor
      0.002

      What you can and cannot negotiate

      The selling price is negotiable, just as when buying, and it is the main lever on the payment. The residual value is set by the leasing company as a percentage of MSRP and is not negotiable. The money factor can sometimes be marked up by the dealer, so ask for the base rate. Acquisition and disposition fees, registration and the first payment are usually due at signing and are not included here.

      Money factor and tax

      Multiply a money factor by 2,400 to get the equivalent APR: 0.00250 is 6%. The finance fee adds the cap cost and the residual because it approximates interest on the average amount outstanding over the lease.

      Most US states tax each monthly payment, which is what this calculator assumes. Some states instead tax the full price or the total of payments upfront, so check local rules.

      Questions people ask

      How is a lease payment calculated?

      Depreciation plus finance charge plus tax. For a $36,000 MSRP car bought at $34,000 with $2,000 down, a 58% residual and 6% APR over 36 months: $308.89 + $132.20 + $30.88 tax = $471.97 a month.

      What is a good money factor?

      One that converts to an APR close to current new-car loan rates for your credit. A money factor of 0.00200 equals 4.8%; 0.00300 equals 7.2%.

      Should I put money down on a lease?

      A down payment lowers the monthly bill but not the total much, and if the car is totaled or stolen early you generally do not get it back. Many people keep the amount due at signing low for that reason.

      Related calculators

      Auto Loan CalculatorCar payment with down payment, trade-in, sales tax and fees included.Car Affordability CalculatorHow much car you can afford using the 20/4/10 guideline.Car Depreciation CalculatorA car’s value year by year from first-year and later depreciation.Loan CalculatorMonthly payment, total interest and a payoff schedule for any fixed-rate loan.APR CalculatorThe true yearly cost of a loan once fees are counted.