This auto lease calculator estimates your monthly car lease payment and shows how it splits into depreciation, finance charge and tax. Enter the negotiated price, residual value, interest rate and term from your lease quote.
How a lease payment is calculated
Depreciation = (adjusted cap cost − residual value) ÷ term
Finance charge = (adjusted cap cost + residual value) × money factor
The money factor is the lease’s interest rate in another form: money factor = APR ÷ 2,400. Sales tax is then added to the monthly payment in most US states.
Worked example
A car with a $35,000 MSRP is negotiated to $33,000, with $2,000 down. The residual is 58% ($20,300), the rate is 6% (money factor 0.0025) and the term is 36 months. Depreciation is $297.22 and the finance charge is $128.25, so with 7% tax the payment is about $455.26 a month.
Frequently asked questions
Is a big down payment on a lease a good idea?
It lowers the payment, but if the car is stolen or totaled early, that money is usually lost. Many people prefer little or nothing down.
What else should I check?
Mileage limits, excess-mileage charges, wear-and-tear rules and disposition fees at the end of the lease.