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Auto Lease Calculator

Estimate a monthly car lease payment from the negotiated price, residual value, and money factor. The auto lease calculator splits the payment into depreciation, finance charge, and tax.

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Monthly lease payment
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Estimate only. Not financial advice.

How to use the Auto Lease Calculator

  1. Enter the Negotiated price (cap cost), any down payment or trade-in, and the Residual value as dollars or a percent of MSRP.
  2. Enter the Money factor, or switch the unit to APR, then the Lease term and Sales tax.
  3. Press Calculate. The monthly payment appears with its depreciation and finance parts, and the total lease cost.

How it works

net cap cost = price − down payment − trade-in
depreciation = (net cap cost − residual) ÷ term
finance charge = (net cap cost + residual) × money factor
payment = (depreciation + finance charge) × (1 + tax rate)
APR ≈ money factor × 2,400

The residual is what the leasing company expects the car to be worth when the lease ends. You pay for the value the car loses, plus a finance charge on the money tied up in it.

Examples

  • $35,000 cap cost, $20,000 residual, 36 months, money factor 0.0025, no tax: $416.67 depreciation + $137.50 finance = $554.17 a month.
  • The same lease with $2,000 down and 7% sales tax: $528.16 a month.

Money factor versus APR

Leases quote a money factor instead of a rate. Multiplying it by 2,400 gives a rough annualized comparison, not a disclosed loan APR: a money factor of 0.0025 is about 6%. Dealers sometimes mark the money factor up, so ask for the buy rate from the leasing company.

Limitations

  • Acquisition and disposition fees, and excess mileage charges, are not included.
  • Some states tax the whole lease upfront instead of each payment.
  • The residual and money factor come from the leasing company; the defaults here are examples.

Sources and method review

The money-factor model shown above calculates depreciation and a rent charge, then applies your entered tax rate to each payment. The Federal Reserve explains the money-factor rent charge. The CFPB explains lease terms, residual value and additional charges. The APR conversion is an approximation for comparison, not a legally disclosed loan APR. Confirm all costs in the lease agreement.

Technical content review: 27 October 2026. The documented method and assumptions were compared with the calculator code and the cited source. This is not a review by a licensed financial or tax adviser.

Frequently asked questions

What is a good money factor?

It depends on current rates and your credit. Multiply by 2,400 to get the rough APR and compare it with loan offers.

Does a bigger down payment lower a lease?

Yes, but the money is lost if the car is written off early. Many advisers suggest putting little or nothing down on a lease.

Is leasing cheaper than buying?

Monthly payments are usually lower, but you own nothing at the end. Compare with the car loan calculator over the same years.

Often used together with Auto Lease Calculator.