Lease Calculator
Calculate your monthly car lease payment with money factor, residual value, and all fees. Includes a buy vs lease comparison and a mileage overage estimator.
$240.09
MONTHLY PMT
$19,038
TOTAL COST
3.0%
EFF. APR
My Vehicle
MSRP: $35,000
Monthly Lease Payment
$240.09
Sedan / Hatchback · 36 months · Complete
Deprec.
$171
Finance
$56
Tax
$14
Cap Cost
$25,395
Residual
$19,250
Total Paid
$19,038
Drive-Off
$10,635
💰 Cost Breakdown
Effective APR ≈ 3.00%
🚙 Buy vs Lease — Same Term
Buying finances the full MSRP as a standard loan at your entered APR.
$240.09
Lease / Month
$19,038 total
$1,072.72
Buy / Month
$38,618 total
Buying builds equity toward eventual ownership; leasing payments build none but stay lower for a new vehicle every few years.
🛣️ Mileage Overage Estimator
Excess / Year
2,000 mi
Total Excess
6,000 mi
Total Overage Fee
$900
How a Car Lease Payment Is Calculated
A lease payment breaks down into three pieces: depreciation (the vehicle’s expected loss in value over your term), a finance charge (the lease equivalent of interest), and sales tax on top. Understanding each piece separately is what lets you actually negotiate a deal instead of just haggling over “the monthly number.” For a rate-focused deep dive on money factor and residual value alone, see our auto lease calculator, or for straight vehicle financing compare against our auto loan calculator.
The Lease Payment Formula
Adjusted Cap Cost = Negotiated Price + Fees − Down Payment − Trade-In + Owed − RebatesResidual Value = MSRP × Residual %Depreciation / mo = (Cap Cost − Residual) / TermFinance Charge / mo = (Cap Cost + Residual) × Money FactorMonthly Payment = (Depreciation + Finance Charge) × (1 + Tax Rate)The money factor is the lease equivalent of an interest rate. Convert it to an approximate APR with: APR ≈ Money Factor × 2,400. A money factor of 0.00125 works out to roughly 3% APR.
Key Leasing Concepts
📉
Residual Value
The higher the residual %, the lower your monthly payment. Vehicles with strong resale value tend to have better lease residuals and cheaper payments.
🤝
Negotiate the Cap Cost
This — not MSRP — is the number that's actually up for negotiation. A $1,000 reduction on a 36-month lease saves roughly $27+/month depending on your money factor.
🛣️
Watch Mileage
Overage fees of $0.15-$0.30/mile add up fast if you drive more than allotted. Negotiate extra miles upfront — it's almost always cheaper than paying overage at lease-end.
⚠️
Cap Cost Reduction Risk
A large upfront payment lowers your monthly cost but is risky — if the car is totaled early, gap insurance typically covers the car's value, not your unrecovered cash down.
— FAQ