Estimate a car lease payment from price, residual value, money factor or APR, term and fees.
Please do not make financial decisions based on these results.
What is the Auto Lease Calculator?
A lease payment pays for the car depreciation during the lease plus a finance charge. The calculator uses the capitalized cost, residual value, money factor and tax to estimate your monthly payment.
Understanding vehicle financing
Most vehicles are paid for with a loan or a lease. A loan ends with you owning the car, while a lease is a long rental with mileage limits and fees. The auto loan calculator and the auto lease calculator let you compare the monthly cost of each.
How to use the Auto Lease Calculator
- Enter your numbers. Start with MSRP / sticker price ($), Negotiated price (capitalized cost) ($), Down payment / cap cost reduction ($), then fill in Residual value (% of MSRP), Lease term (months), APR (%) or money factor – per your choice above, Sales tax on payments (%). Use the out-the-door price, not the sticker price, and the rate on your financing offer. Fields marked optional can stay at zero.
- Choose your options. Finance charge entered as, Fees are… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Monthly lease payment, and the cards below show Depreciation / month, Finance charge / month, Sales tax / month. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Auto Lease Calculator using the default values shown in the calculator above:
Inputs
| MSRP / sticker price ($) | 38,000 |
|---|---|
| Negotiated price (capitalized cost) ($) | 36,000 |
| Down payment / cap cost reduction ($) | 2,000 |
| Residual value (% of MSRP) | 60 |
| Lease term (months) | 36 |
| Finance charge entered as | APR (%) |
| APR (%) or money factor – per your choice above | 6 |
| Sales tax on payments (%) | 8 |
| Acquisition & other fees ($) | 695 |
| Fees are… | Rolled into the lease |
Results
| Monthly lease payment | $512.09 |
|---|---|
| Depreciation / month | $330.42 |
| Finance charge / month | $143.74 |
| Sales tax / month | $37.93 |
| Adjusted cap cost | $34,695.00 |
| Residual value | $22,800.00 |
| Money factor (≈ APR) | 0.0025 (≈ 6%) |
| Total cost of lease | $20,435.11 |
With these inputs the calculator returns Monthly lease payment: $512.09. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Auto Lease Calculator reports Monthly lease payment, depreciation / month, finance charge / month, sales tax / month, adjusted cap cost, residual value and money factor (≈ apr). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Dealer fees, taxes and your credit profile change the real figure; confirm them in the finance paperwork. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a residual value?
The projected value of the car at the end of the lease.
What affects the lease payment most?
The negotiated price and the residual value. A higher residual or lower price reduces the depreciation you pay for.
Is it better to lease or buy a car?
Buying costs more per month but you own the car afterward. Leasing has lower payments but you return the car or pay the buyout. Compare total cost over the period you plan to keep it.
What credit score do I need for a good auto loan rate?
Higher scores qualify for lower rates. Check your rate with a bank or credit union before visiting a dealer so you can compare offers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.