Auto Lease Calculator
A car lease payment checked line by line: the depreciation and rent charges, the money factor as an APR and back, tax, the total cost and any excess mileage.
Result
Monthly payment, with tax: $568.62
Check each figure against the lease contract’s disclosure, which Regulation M requires in the US.
- Depreciation charge
- $432.22
- Rent charge
- $136.40
- Money factor as an APR
- 5.16%
- Money factor
- 0.00215
- Total cost of the lease
- $20,470.26
- Residual as a share of MSRP
- 57%
https://calcgallery.com/vehicle-ownership/auto-lease-calculator/
Results are arithmetic on the figures you enter. The site stores no vehicle data, fuel prices, mileage rates, depreciation rates or residual values, because they vary by model and place and change over time. Real fuel economy varies with driving, weather and load. Nothing here is a fitment, safety or financial recommendation. Read the full disclaimer
How to use the Auto Lease Calculator
- Enter the MSRP, the negotiated price, and the residual value as an amount or a share of MSRP, from the lease quote.
- Enter the money factor or the APR, the term, and any cap cost reduction and fees, kept separate.
- Choose how sales tax is charged where you are, and read the payment and what it is made of.
The formulas
adjusted cap cost = negotiated price − cap cost reduction + feesdepreciation = (adjusted cap cost − residual) ÷ monthsrent charge = (adjusted cap cost + residual) × money factorpayment = depreciation + rent charge, plus tax if charged on paymentsAPR ≈ money factor × 2,400The same calculation runs the lease side of the lease versus buy calculator, so the two always give the same payment.
The residual
The residual is what the leasing company expects the car to be worth at the end, set in the contract and often quoted as a share of MSRP. A higher residual means less depreciation to pay for, and a lower payment.
Excess mileage
If you expect to drive more than the lease allows, the extra miles are charged at the end at the rate in the contract. Enter the allowance, your expected mileage and the charge in the advanced options.
With your numbers
- Adjusted cap cost = $37,000.00; residual $23,940.00
- Depreciation ($37,000.00 − $23,940.00) ÷ 36 = $362.78
- Rent charge ($37,000.00 + $23,940.00) × 0.00215 = $131.02
Quick reference
Check each figure against the lease contract’s disclosure, which Regulation M requires in the US.
| Example | Monthly payment, with tax |
|---|---|
| Cap 37,000, residual 23,940, MF 0.00215 | $493.80 |
| Same at a money factor of 0 | $362.78 |
| Residual 26,000 | $441.01 |
| No cap reduction, cap 39,500 | $568.62 |
| At 5.16% APR, 7% tax on payments | $528.36 |
| 15,000 miles against 12,000 allowed | $493.80 |
Common questions about the Auto Lease Calculator
- What is a money factor?
- The lease's interest rate in another form. Multiply it by 2,400 to get an approximate APR: a money factor of 0.00215 is 5.16%. Divide an APR by 2,400 to get the money factor. Dealers quote money factors partly because they look small; converting them lets you compare a lease with a loan.
- How is a lease payment worked out?
- In two parts. The depreciation charge pays for the value you use up: the cap cost minus the residual, spread over the months. The rent charge is the finance cost: the cap cost plus the residual, times the money factor. 37,000 down to a 23,940 residual over 36 months is 362.78 a month, plus 131.02 of rent charge at 0.00215: 493.80.
- Why keep cap reductions and fees apart?
- Because they pull in opposite directions. A cap cost reduction is money paid down that lowers what is financed; a fee rolled in raises it. Entered as one net number, a lease quote cannot be checked. Paying 2,500 down on the example saves 74.82 a month, more than 2,500 ÷ 36, because it also lowers the rent charge.
- How is tax charged on a lease?
- It depends on where you live. Many US states tax each monthly payment; some tax the whole capitalised cost up front; a few do neither. Choose the one that applies and enter the rate; none is supplied.