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Calculator Answers

Lease Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A lease calculator is a financial planning utility that estimates the monthly payments for an auto lease. The calculator computes the depreciation fee, which is the capitalized cost minus residual value divided by the term, and the finance fee, which multiplies the capitalized cost plus residual value by the money factor. It also includes local sales taxes on lease payments. Car shoppers use this tool to compare lease offers from dealerships, negotiate capitalized costs, and understand the total cost of leasing a vehicle.

Enter MSRP, negotiated price, down payment, trade-in, residual value, money factor, term, sales tax, and fees. The calculator returns depreciation, finance charge, monthly payment, due at signing, and total lease cost.

See also: Car Payment Calculator, Auto Affordability Calculator, and Loan Payment Calculator – Amortization Tool.

Quick Answer

Estimate monthly car lease payments. Enter the vehicle price, down payment, money factor, residual value, and term to see a payment breakdown.

$

Sticker price; used to compute residual. · e.g. 40,000

$

Selling price you actually agreed to. · e.g. 38,000

$

e.g. 2,000

$

Net trade value, after any payoff. · e.g. 0

%

Percent of MSRP the car is worth at lease end. · e.g. 58

Interest rate in lease form. APR ≈ money factor × 2400. · e.g. 0.00125

mo

e.g. 36

%

On the monthly payment in most states. · e.g. 7

$

Capitalized into the lease unless paid up front. · e.g. 800

About this estimate

The calculator uses the standard lease formula: depreciation (cap cost minus residual, divided by months) plus a finance charge (sum of cap cost and residual, times money factor), plus sales tax on the monthly payment. Real lease contracts vary by state, captive lender, and incentive structure.

Finance estimate only. Not a dealer quote and not legal or financial advice. Sales tax treatment of lease payments varies by state.

Lease estimate

Estimated monthly payment

$484.47

APR ≈ 3% · term 36 months

Adjusted cap cost$36,800.00
Residual value$23,200.00
Depreciation (over term)$13,600.00
Monthly depreciation$377.78
Monthly finance charge$75.00
Monthly sales tax$31.69
Monthly payment$484.47
Due at signing (estimate)$2,484.47
Total lease cost$19,441.00

Money factor × 2400 ≈ APR. Total lease cost is monthly payment × months plus the down payment and trade-in equity (cap cost reduction), but excludes the disposition fee and any mileage overage at lease end.

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Examples

$40k MSRP · $38k cap · 58% residual · 0.00125 MF · 36 mo · 7% tax

Monthly ≈ $480 · APR ≈ 3%

$30k MSRP · $29k cap · 60% residual · 0.00100 MF · 36 mo · 6% tax

Monthly ≈ $325

$55k MSRP · $52k cap · 55% residual · 0.00150 MF · 39 mo · 8% tax

Monthly ≈ $700

How it works

A lease pays for the part of the car you use (depreciation) plus interest on the leased amount (finance charge). The calculator applies the standard lease formula and adds sales tax on the monthly payment.

Adjusted cap cost · negotiated_price + fees − down − trade_in

Depreciation/mo · (adjusted_cap_cost − residual) / months

Finance charge/mo · (adjusted_cap_cost + residual) × money_factor

Monthly payment · (depreciation + finance) × (1 + sales_tax%)

APR equivalent · money_factor × 2400

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Disclaimer. Finance estimate only. Real lease contracts include exact state and local tax treatment, captive-lender incentives, regional adjustments, gap insurance, registration, and disposition fees that this calculator does not model. Not a dealer quote and not legal or financial advice.

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Car Payment CalculatorEstimate a monthly car payment with price, down payment, trade in value, sales tax, APR, and loan term. Works for any car loan or auto loan.Auto Affordability CalculatorEstimate the max vehicle price you can afford from monthly budget, down payment, trade-in, APR, term, sales tax, and fees.Loan Payment Calculator – Amortization ToolCalculate monthly payments, total interest, and payoff time using our loan payment calculator. Enter the loan amount, annual interest rate, and term.Amortization CalculatorCalculate your monthly loan payments, see the principal and interest breakdown, and generate a full month-by-month amortization schedule for any fixed-rate loan.

Frequently asked questions

Lease payments have two parts plus tax. Depreciation = (adjusted cap cost − residual value) ÷ months. Finance charge = (adjusted cap cost + residual value) × money factor. Pre-tax monthly payment = depreciation + finance charge. Sales tax is then applied to the monthly payment (in most states) to get the total monthly payment.

Money factor is the lease equivalent of an interest rate. Multiply the money factor by 2400 to get the approximate APR. A money factor of 0.00125 is roughly a 3% APR (0.00125 × 2400 = 3).

Residual value is what the car is expected to be worth at the end of the lease. It is set by the captive lender (the manufacturer's financing arm) based on the model, term, and mileage cap. A higher residual percent means more of the car's value is left at lease end, which lowers your monthly payment.

Adjusted cap cost is the negotiated selling price plus capitalized fees minus the cap cost reduction (down payment and trade-in equity). It is the amount the lease actually finances.

Most states tax the monthly payment (depreciation plus finance charge). A few (Illinois, Texas, etc.) tax the full selling price or the down payment instead. Some states tax cap cost reductions separately. This calculator uses the most common method: percent of the monthly payment.

Due at signing typically includes the first monthly payment, the down payment (cap cost reduction), upfront taxes and fees, and sometimes the acquisition fee. This calculator shows a simplified due-at-signing equal to down payment plus first month. Your actual due-at-signing will vary by lender and state.

No. This is a planning estimate. Real dealer leases include captive-lender incentives, regional differences, dealer fees, registration costs, gap insurance, and exact sales-tax treatment that this calculator does not model. Always compare a written lease quote to the worksheet before signing.