Lease Calculator
Break down a car lease into its real components: depreciation, finance (rent) charge, and tax. Enter MSRP, selling price, residual value, money factor, and term to see your true monthly payment, the equivalent APR, and the total cost of the lease — so dealer quotes can't hide the math.
How to Use
- Enter the MSRP and your negotiated selling price (the capitalized cost), plus any down payment.
- Enter the residual value as a percent of MSRP — the car's projected worth at lease end.
- Enter the money factor (multiply by 2400 to see the equivalent APR) and the term in months.
- Enter your local sales tax rate as a percent.
- Read the depreciation fee, finance fee, monthly payment, equivalent APR, and total lease cost.
Show Work
Formula
About the Lease Calculator
Need a hand with personal-finance and money decisions? The Lease Calculator does the work for you — free, and right here in your browser. Break down a car lease into its real components: depreciation, finance (rent) charge, and tax. Enter MSRP, selling price, residual value, money factor, and term to see your true monthly payment, the equivalent APR, and the total cost of the lease — so dealer quotes can't hide the math.
How it works
Type your numbers into the boxes. The answer shows up right away — you do not have to press a button. If you change a number, the answer changes too. So you can try different numbers and watch what happens, or check an answer you worked out yourself. Just make sure each box has the right kind of number in it.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
What is the money factor and how does it relate to APR?
The money factor is how lease interest is quoted — a small decimal like 0.0025. Multiply it by 2,400 to get the approximate APR, so 0.0025 is about 6%. A lower money factor means a cheaper lease, and like a loan rate it is often negotiable or tied to your credit score.
What is residual value and why does it matter?
Residual value is the car's projected worth at the end of the lease, set by the leasing company as a percent of MSRP. You only pay for the depreciation — the gap between cap cost and residual — so a higher residual means lower monthly payments. It also becomes the buyout price if you choose to purchase at lease end.
How is the monthly lease payment built up?
Each payment has two parts: the depreciation fee (cap cost minus residual, spread over the term) and the finance fee (cap cost plus residual, times the money factor). Sales tax is then added on top. The tool shows each piece separately so you can see where the money goes.
Should I make a down payment on a lease?
A down payment (cap cost reduction) lowers your monthly payment but is generally not recommended: if the car is totaled or stolen early, that upfront cash is typically not refunded. Many advisors prefer a low or zero down payment and a slightly higher monthly instead.
Is leasing cheaper than buying?
Leasing usually means lower monthly payments but no ownership equity at the end, and mileage limits with per-mile overage fees. Buying costs more per month but builds an asset you keep. The total lease cost shown here helps you compare against financing the same car.
How do I use the Lease Calculator?
Simply type your numbers and read the result, which refreshes the instant you change something. There is nothing to submit and nothing to wait for.
Is it free? Does it work without internet?
Yes to both. It is free with no sign-up, and once the page has loaded it keeps working even with no internet.
Where does my data go?
Nowhere — every calculation runs on your own device. Nothing you enter is uploaded, logged, or stored.
Common Use Cases
Checking a dealer's lease quote
Plug in the numbers the salesperson gives you to verify the monthly payment and spot inflated fees or money factor.
Negotiating the selling price
See how lowering the capitalized cost (the price you negotiate) directly reduces your monthly payment.
Comparing lease terms
Test 24-, 36-, and 48-month terms to balance monthly cost against total cost over the lease.
Lease vs. finance decision
Compare the total lease cost against financing the same vehicle with the Auto Loan calculator.
Understanding the money factor
Convert the quoted money factor to an APR to judge whether the lease's effective rate is competitive.
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