Calcist

Style

Buttons

Spacing

How much to show

Decimal places

Text size

Auto lease calculator

Enter the lease numbers from the dealer to see how the monthly payment is built, and what the whole lease costs. Uses US lease conventions (money factor, residual, and sales tax on each payment as most states charge it).

By the Calcist team · Checked against known answers · Updated October 27, 2026

Private: calculated on your device. Nothing you type is sent anywhere.

Estimates for planning, not financial, tax or legal advice. Figures use US rules unless the page says otherwise.

Next: Compare with buying: the auto loan calculator shows the payment and total cost of financing the same car.

How a lease payment is calculated

A lease payment has two parts: paying for the value the car loses while you drive it (depreciation), and a finance charge (the rent charge). Most states then add sales tax to each payment.

Adjusted cap cost = negotiated price + fees added − down payment − trade-in
Residual value = MSRP × residual %
Depreciation fee = (adjusted cap cost − residual) ÷ months
Rent charge = (adjusted cap cost + residual) × money factor
Payment = (depreciation fee + rent charge) × (1 + tax rate)

The rent charge uses cap cost plus residual on purpose. It works out to roughly the interest on the average amount tied up in the car over the lease.

Money factor and APR

APR ≈ money factor × 2,400    money factor = APR ÷ 2,400

A money factor of 0.0025 is about 6% APR. If the dealer quotes only a payment, ask for the money factor and the residual, and check them here.

Worked example

MSRP $40,000, negotiated to $38,000, with $2,000 down. The 36-month residual is 58% of MSRP = $23,200, and the money factor is 0.0025.

Adjusted cap cost = 38,000 − 2,000 = $36,000
Depreciation = (36,000 − 23,200) ÷ 36 = $355.56
Rent charge = (36,000 + 23,200) × 0.0025 = $148.00
Before tax $503.56; with 7% tax: $538.80 a month

Limitations

  • Taxes on leases vary. Most states tax each payment, as here; a few tax the down payment too, or the whole price upfront.
  • Drive-off costs (first payment, registration, security deposit) aren't included unless you add them to the fees.
  • Mileage overage, wear-and-tear and disposition fees at the end can add a lot. Check the allowance in your contract.
  • The residual and money factor are set by the leasing company, not by you. The residual is usually not negotiable; the price and often the money factor are.

Sources

How we checked this

Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:

  • MSRP $40,000, price $38,000, $2,000 down, 58% residual, MF 0.0025, 36 months, 7% tax: $538.80 ✓
  • Same with 6% APR instead of the money factor: $538.80 ✓
  • $45,000 + $695 fee, $3,000 down, $2,000 trade, $27,000 residual, 4.8% APR, 39 months, 8.25% tax: $526.68 ✓
  • Residual above the cap cost: error ✓

Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.

Add this calculator to your website (free)

Paste this code into any web page. The calculator works on your page, resizes itself, has no ads and no tracking, and nothing your visitors type is sent anywhere. More about embedding.

Questions people ask

What is a good money factor?

Multiply it by 2,400 to compare with loan APRs. A money factor of 0.0020 is about 4.8% APR. Lenders mark it up, so ask for the buy rate if your credit is good.

What does residual value mean?

It's what the leasing company expects the car to be worth at the end of the lease, set as a percent of MSRP. A higher residual means a lower payment.

Does a bigger down payment save money on a lease?

It lowers the payment, but if the car is totaled or stolen early, that money is usually gone. Many people prefer to put little or nothing down on a lease.

How do I convert a money factor to APR?

Multiply by 2,400. 0.0025 × 2,400 = 6%. To go the other way, divide the APR by 2,400.

Related calculators

Auto loan calculatorCar payment with tax, fees, down payment and trade-in, or the price you can afford.Loan calculatorPayment and interest on car, personal and student loans.APR calculatorThe true APR of a loan with fees, by the Regulation Z method.Payment calculatorMonthly payment for a set term, or how long a set payment takes.