About the Auto Lease Calculator
When you lease a car you pay for the part of its value that you use, plus a finance charge, rather than the whole price. This auto lease calculator estimates the monthly payment from the agreed price, any down payment or trade-in, the residual value (what the car will be worth at the end), the money factor or equivalent APR, the length of the lease, sales tax and fees. It splits the payment into a depreciation part and a finance charge part, shows the total due at signing and the total cost of the lease, and converts between money factor and APR so you can compare offers with loan rates.
Updated October 2026
How to use the Auto Lease Calculator
- 1Enter the agreed price of the car.
- 2Enter any down payment, trade-in or rebates.
- 3Enter the residual value as a percentage of the price, from the lease offer.
- 4Enter the money factor or the APR, and the lease term in months.
- 5Add sales tax and signing fees, then read the monthly payment and total cost.
Which numbers to negotiate
- The price of the car, which sets the capitalised cost
- The money factor, which sets the finance charge
- The fees, which can often be reduced
- The mileage allowance, which sets extra charges
- The residual value, which is usually fixed by the lender
Lease versus buy
Leasing usually gives a lower monthly payment and a newer car every few years, but you own nothing at the end and pay extra for excess mileage and damage. Buying costs more each month but builds ownership. If you drive a lot or keep cars for many years, buying often costs less overall. Use a loan calculator for the purchase side and compare the total cost over the same period.
Related tools
The Auto Loan Calculator shows the cost of buying with a loan, the Loan Calculator handles general borrowing, the Down Payment Calculator plans a deposit, the Sales Tax Calculator works out tax and the Mileage Calculator tracks trip distance. This tool is an estimate for comparison and is not financial advice.
Features
- Monthly lease payment
- Depreciation and finance parts shown separately
- Money factor and APR conversion
- Sales tax on the payment
- Due at signing and total lease cost
- Terms from 6 to 84 months
- Runs in your browser
Frequently asked questions
How is a car lease payment calculated?
The monthly payment is the depreciation charge plus the finance charge, plus tax. Depreciation is the capitalised cost minus the residual value, divided by the number of months. The finance charge is the capitalised cost plus the residual value, multiplied by the money factor. For a 30,000 car with 2,000 down, a 60 percent residual, a 0.0025 money factor and 36 months, the payment is about 393.
What is a money factor?
It is the lease version of an interest rate, written as a small decimal such as 0.0025. Multiply it by 2,400 to get the approximate APR, so 0.0025 is about 6 percent. Dealers often quote the money factor, which can make the cost harder to compare with loans.
What is the residual value?
It is the predicted value of the car at the end of the lease, usually set by the leasing company as a percentage of the original price. A higher residual means less depreciation to pay for, so a lower payment. It is stated in the lease offer.
What is the capitalised cost?
It is the price you are financing in the lease: the agreed price plus any fees rolled in, minus down payments, trade-in and rebates. Negotiating the price down lowers the capitalised cost and so the payment, just as when buying.
Should I put money down on a lease?
Many advisers suggest putting little or nothing down, because if the car is stolen or written off early, the down payment is usually lost. Compare the lower monthly payment against that risk. The calculator shows both the payment and the amount due at signing.
How accurate is the result?
It follows the standard method, but real lease contracts may handle tax, fees and rounding differently, and some states tax the whole lease at the start. Always compare with the figures in the written offer, and check the mileage limit and wear charges.