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Car Lease Calculator

Enter the numbers from the dealer quote to see your monthly lease payment — and exactly where every dollar goes.

Residual is based on MSRP, not the sale price.
The selling price you agreed on.
Acquisition, doc and other capitalized fees.
Cap cost reduction (cash, rebates, trade-in equity).
Set by the lender, usually 45–65% for 36 months.
Decimal like 0.00125. Multiply by 2400 to get the APR.
Your state/province rate. Use 0 to see the pre-tax payment.
Estimated monthly payment— / month
  • Depreciation
  • Rent charge
  • Tax
  • Payment before tax—
  • Sales tax per month—
  • Depreciation per month—
  • Rent charge (interest) per month—
  • Adjusted cap cost—
  • Residual value—
  • Residual % of MSRP—
  • Money factor—
  • Equivalent APR—
  • Total rent charge over the lease—
  • Total cost (payments + down)—

100% private. Everything is calculated in your browser. Nothing you type is sent or stored on a server.

Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

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How to calculate a car lease payment

Every auto lease payment has three parts. You pay for the value the car loses while you drive it (depreciation), a finance fee on the money tied up in the car (rent charge), and usually sales tax on each payment. This lease payment calculator uses the same standard formulas lenders use in the US and Canada.

Adjusted cap cost = negotiated price + capitalized fees − down payment Residual value = MSRP × residual % Depreciation = (adjusted cap cost − residual value) ÷ term Rent charge = (adjusted cap cost + residual value) × money factor Monthly payment = (depreciation + rent charge) × (1 + sales tax %)

Lease calculator example

A car has an MSRP of $25,000. You negotiate it down to $23,500, roll in $1,000 of fees and put $2,000 down, so the adjusted cap cost is $22,500. The residual is 58% of MSRP ($14,500) and the money factor is 0.00125 (a 3% APR) over 36 months.

ItemMathPer month
Depreciation($22,500 − $14,500) ÷ 36$222.22
Rent charge($22,500 + $14,500) × 0.00125$46.25
Pre-tax payment$222.22 + $46.25$268.47
Tax at 6%$268.47 × 0.06$16.11
Total$284.58

What lowers a lease payment

  • A lower negotiated price. Every $1,000 off the price cuts both the depreciation and the rent charge.
  • A higher residual value. Cars that hold their value lease for less, because you pay for a smaller drop in value.
  • A lower money factor. Ask for the lender's base rate ("buy rate"). Dealers are often allowed to mark it up — check yours with the money factor to APR calculator.
  • Fewer rolled-in fees. Fees you pay up front are not charged rent.

A big down payment lowers the monthly number but not the total cost much, and if the car is totaled early that cash is usually lost. Many lease experts suggest keeping the down payment small for that reason.

Sales tax on a lease differs by state

Most US states tax each monthly payment, which is what this auto lease calculator does. Some states and Canadian provinces tax differently — for example on the full price or on the down payment as well. If yours works another way, set the tax field to 0 and add the tax your dealer quotes separately.

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Frequently asked questions

How do I calculate a car lease payment?

Add the monthly depreciation, (adjusted cap cost − residual) ÷ months, to the monthly rent charge, (adjusted cap cost + residual) × money factor. Then add sales tax if your state taxes lease payments.

What is a good money factor for a car lease?

Multiply it by 2400 to compare it with a loan APR. A money factor of 0.00125 equals a 3% APR. A good money factor is close to the rates you would get on a new-car loan with your credit score.

Why is the residual based on MSRP and not the sale price?

Lenders set the residual as a percentage of MSRP so it does not change when you negotiate. That is why negotiating the price lowers your payment: the residual stays the same while the amount you finance drops.

Does a bigger down payment make a lease cheaper?

It lowers the monthly payment and slightly reduces the total rent charge, but the money is still part of what you pay. If the car is stolen or totaled, a down payment is usually not refunded.

Is this lease calculator accurate?

It uses the standard lease formulas, so if you enter the exact numbers from your contract the result should match within a few cents. Fees and tax rules vary by dealer and state, so treat it as an estimate.

What is the difference between rent charge and interest?

Rent charge is the lease version of interest. It is calculated from the money factor and the money tied up in the car, (cap cost + residual).

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