Car Lease Calculator
Work out a car lease payment the way dealers do. Enter the sticker price and the price you negotiated, the residual value, the money factor (or APR), and what you’ll put down, and the calculator splits the payment into depreciation, finance charge, and tax.
Knowing the pieces helps you negotiate: a lower selling price and a lower money factor both cut the payment, while a big down payment only prepays the lease. The calculator converts between money factor and APR so you can compare a lease with a loan.
Calculator
Monthly lease payment
$482.93
36 months · money factor 0.00250 ≈ 6.00% APR
- Depreciation fee
- $324.86
- Finance (rent) charge
- $130.74
- Sales tax
- $27.34
- Adjusted capitalized cost
- $31,995
- Residual value
- $20,300
- Total of payments + down
- $19,386
Standard lease formula: depreciation (cap cost minus residual, spread over the term) plus a finance charge ((cap cost + residual) × money factor), with sales tax on the payment as most states apply it. Some states tax the full price up front instead. Excludes mileage overage, disposition fees, and wear charges at turn-in.
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Calculation Formulas
The amount the lease finances.
Example:
$33,000 + $995 − $2,000 = $31,995.
Residual = MSRP × residual %.
Example:
($31,995 − $20,300) ÷ 36 = $324.86.
Money factor ≈ APR ÷ 2,400.
Example:
($31,995 + $20,300) × 0.0025 = $130.74.
Most states tax each payment.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Money factor to APR | × 2,400 | 0.0025 ≈ 6% APR. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: October 2026
- Federal Consumer Leasing Act (Regulation M)
Requires lessors to disclose the capitalized cost, residual value, rent charge, and total of payments that this calculator models.
- Sales tax varies by state
Most states tax the monthly payment; a few tax the full price or capitalized cost up front.
How to Use This Calculator
- Enter the MSRP and the negotiated selling price.
- Enter your down payment, any trade-in equity, and fees rolled into the lease.
- Enter the lease term, residual value percentage, and money factor or APR.
- Enter your sales tax rate and read the monthly payment and its breakdown.
Frequently Asked Questions
How is a car lease payment calculated?
Payment = depreciation fee + finance charge + tax. The depreciation fee is the adjusted capitalized cost minus the residual value, divided by the months. The finance charge is (capitalized cost + residual) × money factor. For a $33,000 price on a $35,000 MSRP with $2,000 down, $995 in fees, a 58% residual, 36 months, a 0.0025 money factor, and 6% tax, the payment is about $483.
What is a money factor?
The lease’s interest rate written as a small decimal. Multiply it by 2,400 to get the approximate APR: a money factor of 0.0025 is about 6% APR.
What is a good residual value?
Higher is better for a lease, because you pay for less depreciation. Many popular cars carry 50% to 60% residuals on 36-month leases. The residual is set by the lender and usually isn’t negotiable.
Should I put money down on a lease?
Usually as little as possible. A down payment just prepays the lease, and if the car is totaled or stolen early, you may not get it back. Lowering the price or the money factor saves money; putting money down only shifts it.
Guides to go with this calculator
How a Car Lease Works: Money Factor & Residual
When you lease, you pay for the part of the car you use up, plus interest. Once you know the four numbers behind a lease payment, it’s much easier to spot a good deal — and negotiate one.
No Tax on Car Loan Interest: Rules and Savings
Interest on a new car loan is deductible again — up to $10,000 a year through 2028. But the car has to be new and U.S.-assembled, and the income phase-out bites fast. Here’s what it’s really worth.
How Much Car Can You Afford?
Dealers sell you a monthly payment; your budget cares about the total cost. Here’s a simple rule for setting a car budget — and the costs people forget to count.
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