A car lease calculator computes your monthly lease payment using the actual lease math: depreciation fee plus finance fee plus taxes. Enter the capitalized cost, residual value, money factor, and lease term to see your true monthly cost. Estimates are for informational purposes. Actual lease terms vary by dealer and manufacturer.
Lease Details
Used to calculate residual value in dollars
Typically 45–60% of MSRP. Higher = lower payment.
Multiply × 2400 to get APR equivalent
Monthly Lease Payment
Including tax
Depreciation Fee
per month
Finance Fee
per month
Lease Summary
Enter lease details and click Calculate Lease Payment.
How to Calculate Your Car Lease Payment
The car lease calculator uses the standard auto lease formula to compute your monthly payment: add the depreciation fee and the finance fee, then apply tax. Unlike simplified estimates, this tool uses the exact same math as dealerships.
The Lease Formula Explained
A lease payment has two components: the depreciation fee and the finance fee. The depreciation fee is the monthly cost of how much value the car loses during your lease: (Net Cap Cost − Residual Value) ÷ Lease Term. The finance fee is the monthly interest charge: (Net Cap Cost + Residual Value) × Money Factor. Add them together, then apply sales tax, and you have your monthly payment.
What to Negotiate
In a lease negotiation, you can control the cap cost (negotiate it down from MSRP, just like buying), and sometimes the acquisition fee. You cannot negotiate the money factor (set by the manufacturer's finance arm) or the residual value (also manufacturer-set). Knowing the money factor lets you spot "dealer markup" — some dealers raise the money factor above the base rate and pocket the difference.
Lease vs. Buy Decision
Leasing makes sense if you drive under your mileage limit, keep cars under warranty, and prefer lower monthly payments. Buying is better if you drive heavily, keep cars long-term, or want equity. A common mistake is comparing only monthly payments — use our Lease vs Buy Calculator to compare 5-year total cost including residual value and buyout options.
FAQ
What is the money factor in a car lease?
The money factor is the interest rate equivalent for a lease. To convert money factor to APR, multiply by 2400. A money factor of 0.00250 equals 6% APR. Dealers sometimes quote money factors in disguised form — always ask for the money factor directly and verify it.
What is residual value in a lease?
Residual value is the estimated worth of the car at the end of the lease term, expressed as a percentage of MSRP. A 55% residual on a $40,000 car means the car is expected to be worth $22,000 at lease end. Higher residual values result in lower monthly payments.
Is this lease calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
Is my data safe?
Absolutely. Everything runs in your browser. No data is transmitted or stored.
What is a capitalized cost reduction?
A cap cost reduction is essentially a down payment on a lease — it reduces the gross capitalized cost (vehicle selling price plus fees) and lowers your monthly payment. Unlike a purchase down payment, a cap cost reduction on a lease does not build equity and is not refunded if the car is totaled.
How do acquisition fees affect my lease payment?
Acquisition fees (typically $500–$1,000) are charged by the leasing company and added to the gross cap cost. They increase the amount being depreciated over the lease term, raising your monthly payment slightly.
Should I put money down on a lease?
Generally no. Unlike buying, a down payment on a lease does not reduce total cost — it just shifts money to the front. If the car is totaled early in the lease, you lose that money. Most financial advisors recommend zero or minimal cap cost reduction on leases.