Auto Lease Calculator
Calculate your monthly auto lease payment and see exactly how depreciation, finance charge and sales tax add up.
Example
A car with a $40,000 MSRP negotiated to $36,000, a 60% residual ($24,000), a money factor of 0.00125, a 36-month term and 7% tax:
- Depreciation fee = (36,000 - 24,000) / 36 = $333.33
- Finance fee = (36,000 + 24,000) x 0.00125 = $75.00
- Base payment = 333.33 + 75.00 = $408.33
- Tax = 408.33 x 7% = $28.58
Total estimated monthly payment = $436.92 (equivalent APR = 0.00125 x 2400 = 3.00%).
How it works
Enter the MSRP, negotiated (cap cost) price, residual percentage, money factor, lease term and sales tax rate. The tool computes the depreciation fee, finance fee and tax, then shows the total monthly payment live.
Good to know
The Auto Lease Calculator estimates a monthly car lease payment from the six numbers that actually drive the cost: the MSRP, your negotiated cap cost, the residual percentage, the money factor, the term in months, and your sales tax rate. Instead of just spitting out one figure, it splits the payment into its three moving parts — the depreciation fee, the finance fee, and the monthly tax — so you can see which lever is inflating your quote. It is built for anyone comparing dealer lease offers, sanity-checking a payment quoted on the showroom floor, or deciding whether a lease pencils out before walking in.
Reach for it when a dealer hands you a payment without a breakdown, or when you want to test "what if" scenarios: dropping the cap cost by negotiating, comparing a 36-month versus 48-month term, or seeing how a higher residual on one trim changes the math. Because the depreciation fee is just (cap cost minus residual) divided by the term, you can immediately tell whether a lower payment came from a real price cut or simply a longer term spreading the same depreciation over more months.
To read the result, look past the headline number to the breakdown bars. The depreciation fee is what you pay for the value the car loses while you drive it; the finance fee (money factor times the sum of cap cost and residual) is the rent charge; and the Equivalent APR converts the money factor to a familiar interest rate so you can compare it to loan rates. If the finance fee dominates, the money factor is high and worth negotiating or marking up less.
One important caveat: this estimate uses the "tax on the monthly payment" method common in most US states, and it deliberately excludes the acquisition fee, down payment (cap cost reduction), doc fees, and registration. Some states tax the full price or cap cost up front instead, which can shift the total noticeably, so treat the output as a comparison baseline rather than the exact figure on a signed contract.
Frequently asked questions
What is a money factor and how does it relate to APR?
The money factor is the lease equivalent of an interest rate, expressed as a small decimal. Multiply it by 2,400 to get the approximate APR. For example, a money factor of 0.00125 equals about 3.00% APR. A lower money factor means a smaller finance fee.
Why does residual value use MSRP instead of the negotiated price?
Leasing companies set the residual as a percentage of the vehicle's MSRP (sticker price), not the price you negotiate. A higher residual means the car is expected to hold more value, so you pay for less depreciation and your monthly payment drops, even if your negotiated price stays the same.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
How is a lease monthly payment calculated?
A lease payment is the sum of a depreciation fee, a finance fee, and tax. The depreciation fee is (cap cost minus residual value) divided by the term in months; the finance fee is (cap cost plus residual) multiplied by the money factor; tax is then applied, in most states to that monthly subtotal.
What is a good money factor for a car lease?
Money factors vary with credit score and current rates, but converting them to APR helps you judge them: multiply the money factor by 2,400. A factor of 0.00125 equals roughly 3% APR, while higher factors mean a larger finance charge over the lease.
Does a higher residual value lower or raise my lease payment?
A higher residual value lowers the depreciation portion of your payment because the car is expected to be worth more at lease end, so you are paying for less lost value. It can, however, slightly increase the finance fee since that fee is based on the sum of the cap cost and residual.
What is the difference between cap cost and MSRP in a lease?
MSRP is the sticker price and is used to set the residual value as a percentage. The capitalized cost (cap cost) is the negotiated selling price the lease is actually financed on, so lowering the cap cost reduces the depreciation you pay.
Should I make a down payment on a car lease?
A down payment (cap cost reduction) lowers the monthly payment by reducing the amount being depreciated and financed. A common consideration is that if the car is totaled or stolen early, that upfront money may not be recoverable; this calculator excludes down payments so it shows the payment before any cap cost reduction.
Why is the tax on my lease calculated monthly instead of on the whole car?
Many US states tax only the monthly lease payment rather than the full vehicle price, which is the method this calculator uses. Other states tax the entire selling price or cap cost up front, so the tax treatment depends on where the vehicle is registered.
What fees are not included in a basic lease payment estimate?
A simple lease payment estimate typically leaves out the acquisition (bank) fee, disposition fee at lease end, document fees, registration, and any down payment. These can add several hundred to over a thousand dollars across a lease, so the true cost is higher than the monthly figure alone.
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