Auto Lease Calculator — Monthly Payment Estimator
Calculate an exact monthly car lease payment from vehicle price, residual value, money factor, and lease term — with a full breakdown of depreciation, finance charge, and total lease cost.
Auto Lease Calculator
Monthly Payment & Total Cost Estimator
VEHICLE DETAILS
RESIDUAL VALUE
MONEY FACTOR / INTEREST
Money Factor 0.0025 = 6.0% APR
LEASE TERM
UPFRONT & FEES
Monthly Lease Payment
$615
36-month lease · 12,000/yr
- Depreciation
- $464
- Finance Charge
- $152
- Tax
- $0
$38,695
Adj. Cap Cost
$22,000
Residual Value
$22,508
Total Lease Cost
$615
Due at Signing
Lease Component
- Vehicle Cap Cost
- $38,000
- − Down Payment & Trade-In
- -$0
- + Acquisition Fee
- $695
- Adjusted Cap Cost
- $38,695
- Residual Value
- $22,000
- Monthly Depreciation
- $464
- Monthly Finance Charge
- $152
- Monthly Tax
- $0
- Total of All Payments
- $22,158
- Total Lease Cost
- $22,508
Total Lease Cost Breakdown
- Depreciation
- Finance Charges
- Tax & Fees
📏 Mileage Overage Calculator
Enter actual miles above to calculate any overage.
⚖️ Lease vs Buy Comparison
Compare total cost of leasing vs financing the same term.
Leasing
- Monthly Payment
- $615
- Total Paid
- $22,508
- Asset Value at End
- $0 (returned)
- Net Cost
- $22,508
Buying (same term)
- Monthly Payment
- $1,165
- Total Paid
- $41,928
- Asset Value at End
- $22,000
- Net Cost
- $19,928
Buying is cheaper by $2,580 net cost over 36 months (you own an asset worth $22,000).
💡 Smart Lease Negotiation Tips
This calculator provides educational estimates based on standard lease-payment formulas. Actual payments depend on lender-specific money factors, credit qualification, taxes, and dealer fees — get exact figures before signing.
Money Factor Guide
| Money Factor | Equivalent APR | Rating |
|---|---|---|
| 0.0008 | 1.9% | Excellent |
| 0.0015 | 3.6% | Good |
| 0.0020 | 4.8% | Average |
| 0.0025 | 6.0% | Fair |
| 0.0030 | 7.2% | High |
| 0.0040 | 9.6% | Very High |
How a Car Lease Payment Is Calculated
A lease payment has two core components — the depreciation charge and the finance charge — plus sales tax. Here's the exact formula dealers use:
Adjusted Cap Cost = Negotiated Price − Down Payment − Trade-In + Acquisition FeeMonthly Depreciation = (Adjusted Cap Cost − Residual Value) / Lease TermMonthly Finance Charge = (Adjusted Cap Cost + Residual Value) × Money FactorMonthly Payment (before tax) = Depreciation + Finance Charge
The key insight: you only pay for the portion of the car's value you actually use — the difference between the price and the residual — not the full purchase price. That's why leasing a $40,000 vehicle with a 55% residual value only finances about $18,000 of depreciation, not the whole $40,000.
🔑 Residual Value: The Most Important Lease Factor
The residual value is set by the leasing company, not negotiable, and represents the lender's prediction of the car's resale value at lease-end. A higher residual means lower monthly payments since you're financing less depreciation — vehicles with strong resale value tend to lease more affordably even when their purchase price is similar to a weaker-residual competitor.
| Factor | Leasing | Buying |
|---|---|---|
| Monthly Payment | Lower | Higher |
| Long-term Cost | Higher (no equity) | Lower (own asset) |
| Mileage | Limits apply | Unlimited |
| Upgrades | New car every 2-3 yrs | Same car until sold |
| Customization | Not allowed | Full freedom |
| Equity | None at end | Own the car |
| Business Tax Deduction | Payments may be deductible | Depreciation deductible |
— FAQ