Money
Lease Calculator
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.
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
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.
Estimated monthly payment
$484.47
APR ≈ 3% · term 36 months
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.
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
Related money calculators
- Car payment calculator for the buy-side amortization.
- Auto affordability calculator for the price-from-budget direction.
- Loan calculator for general amortization math.
- Sales tax calculator for state and local tax on the monthly payment.
- All money calculators.
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.
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.
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