Car Lease Calculator
Calculate your monthly car lease payment using vehicle price, residual value, and money factor. Compare lease vs buy and negotiate better lease terms.
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Total Lease Cost —
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Extended More scenarios, charts & detailed breakdown ▾
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Professional Full parameters & maximum detail ▾
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Total Lease Cost (all-in) —
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How to Use This Calculator
- Enter the Vehicle Price (MSRP) — the sticker price of the car.
- Enter the Residual Value % — ask the dealer or check Edmunds/Leasehackr.
- Enter the Money Factor — the lease interest rate (e.g., 0.00125). Multiply by 2,400 for APR.
- Select the Lease Term — 36 months is most common.
- Add a Down Payment to reduce monthly payments.
Formula
Monthly Lease Payment:
Depreciation = (Cap Cost − Residual Value) ÷ Term
Finance Charge = (Cap Cost + Residual Value) × Money Factor
Monthly = Depreciation + Finance Charge (+ sales tax)
Example
Example: $35,000 MSRP, 55% residual, 0.00125 money factor, 36 months, $2,000 down.
- Residual Value: $19,250
- Depreciation: ($33,000 − $19,250) ÷ 36 = $381.94/mo
- Finance Charge: ($33,000 + $19,250) × 0.00125 = $65.31/mo
- Monthly Payment (pre-tax): $447.25
Frequently Asked Questions
- A lease payment has two parts: depreciation (cap cost minus residual, divided by term) and finance charge ((cap cost + residual) × money factor). Add sales tax on top for the total monthly payment.
- Money factor is the lease equivalent of an interest rate. Multiply it by 2,400 to get the approximate APR. A money factor of 0.00125 equals roughly 3% APR. Always ask the dealer for the buy-rate money factor.
- Residual value is the projected worth of the car at lease end, expressed as a percentage of MSRP. Higher residual = lower depreciation = lower monthly payment. Luxury brands often have high residuals.
- Financially, large down payments on leases are risky — if the car is totaled, you lose that money. Better to put less down and keep cash. Down payments reduce monthly payments but do not affect total cost much.
- Yes — negotiate the cap cost (selling price) just like a purchase. The money factor is set by the manufacturer's finance arm but dealers may mark it up. Ask for the buy-rate money factor and negotiate cap cost separately.
Related Calculators
Sources & References (5) ▾
- CFPB — Auto Leasing — Consumer Financial Protection Bureau
- FTC — Automotive Leasing — Federal Trade Commission
- Consumer Leasing Act (Regulation M) — Consumer Financial Protection Bureau
- Federal Reserve — Consumer Leasing Disclosures — Federal Reserve
- IRS Publication 463 — Travel, Gift, and Car Expenses — Internal Revenue Service