Lease Calculator
Estimate an auto lease monthly payment using vehicle price, down payment, residual value, term, interest rate, tax, and upfront fees.
Lease Results
This calculator provides an estimate only. Actual lease payments can differ because of dealer fees, acquisition fees, registration costs, taxes, incentives, credit tier, mileage allowance, security deposit, disposition fee, and whether fees are paid upfront or rolled into the lease.
Use this Lease Calculator to estimate the monthly payment and total cost of an auto lease from the vehicle price, residual value, lease term, interest rate or money factor, down payment, taxes, credits, and upfront fees.
Important: This is an estimate only. Actual lease payments can differ because of dealer fees, taxes, incentives, credit tier, mileage limits, acquisition fees, and other lease terms.
Lease Payment Calculation Method
First calculate the residual value:
Residual value = vehicle price × residual percentage ÷ 100
Then calculate the adjusted capitalized cost:
Adjusted capitalized cost = vehicle price − down payment − trade-in or rebate credit
The monthly depreciation charge is:
Depreciation charge = (adjusted capitalized cost − residual value) ÷ lease term
If APR is entered, the calculator converts it to an approximate money factor:
Money factor ≈ APR ÷ 2400
The monthly finance charge is:
Finance charge = (adjusted capitalized cost + residual value) × money factor
Base monthly payment = depreciation charge + finance charge
If tax is applied to the monthly payment:
Estimated monthly payment = base payment + estimated tax
Example
Suppose a vehicle has:
- Vehicle price: $35,000
- Lease term: 36 months
- Down payment: $2,000
- Residual value: 55%
- APR: 6%
- Sales tax: 7%
Residual value = $35,000 × 55% = $19,250
Adjusted capitalized cost = $35,000 − $2,000 = $33,000
Money factor = 6 ÷ 2400 = 0.0025
Depreciation charge = ($33,000 − $19,250) ÷ 36 ≈ $381.94
Finance charge = ($33,000 + $19,250) × 0.0025 ≈ $130.63
Base payment ≈ $512.57 per month
With 7% estimated tax:
Monthly payment ≈ $548.45
Important Notes
- Residual value is the estimated value of the vehicle at the end of the lease.
- A higher residual value generally reduces the depreciation portion of the payment.
- Down payments and rebates reduce the adjusted capitalized cost but do not necessarily reduce every lease fee.
- Taxes are handled differently depending on location and lease structure.
- Acquisition fees, registration, security deposits, disposition fees, excess mileage, excess wear, and purchase-option fees may not be included.
- A lower monthly payment does not always mean a lower total lease cost; compare both monthly payments and total amounts due.
- Review the actual lease agreement and required disclosures before signing.