Auto Lease Calculator

What this auto lease calculator does

This calculator estimates a monthly auto lease payment from the vehicle price, residual value, lease term, down payment, trade-in, sales tax, and either an interest rate or a money factor. It separates the payment into depreciation, rent charge, and tax.

The result helps compare lease offers and understand how the residual value and money factor affect the monthly cost.

How to use this calculator

1. Enter the vehicle price.
2. Enter the lease term in months.
3. Choose whether you know the interest rate or the money factor.
4. Enter the rate or money factor.
5. Enter the down payment, trade-in value, sales tax rate, and residual value.
6. Click Calculate.

The default example uses a $50,000 vehicle, 36-month lease, 0.00208 money factor, $10,000 down, 7% tax, and $24,000 residual. The monthly payment is $617.99.

Auto lease formula

Net capitalized cost = Auto price − Down payment − Trade-in
Monthly depreciation = (Net capitalized cost − Residual value) / Lease term
Money factor = APR / 2400
Monthly rent charge = (Net capitalized cost + Residual value) × Money factor
Monthly tax = (Depreciation + Rent charge) × Sales tax rate
Monthly lease payment = Depreciation + Rent charge + Tax

The money factor is a lease-specific way to express the finance charge. Multiply it by 2,400 to estimate the equivalent annual percentage rate.

What the results include

• Net capitalized cost: the vehicle price after down payment and trade-in.
• Amortized amount: the value consumed during the lease.
• Monthly depreciation: the amortized amount spread over the term.
• Money factor and equivalent APR: the lease finance rate.
• Monthly interest: the rent charge.
• Monthly tax: sales tax on the depreciation and rent charge.
• Monthly payment: the total lease payment before upfront costs.
• Upfront tax: tax on the down payment.
• Total lease payments: monthly payment multiplied by the term.

Assumptions and limitations

The calculator assumes a closed-end lease with a known residual value and a constant money factor. It does not include acquisition fees, disposition fees, excess mileage, wear-and-tear charges, insurance, registration, or lease-end purchase options. Sales tax rules for leases vary by state.

Frequently asked questions

What is a money factor?

A money factor is the lease finance charge expressed as a small decimal. Multiply it by 2,400 to compare it with an annual interest rate.

What is residual value?

Residual value is the estimated value of the vehicle at the end of the lease. A higher residual usually lowers the monthly depreciation.

Is a lease always cheaper than buying?

A lease can have a lower monthly payment, but you do not own the vehicle at the end. Compare the total cost of leasing with the cost of buying and reselling.

Does the calculator include taxes and fees?

It includes sales tax on the monthly payment and tax on the down payment. It does not include acquisition, disposition, registration, or insurance costs.

Source

References:

• Consumer Financial Protection Bureau — Auto Loans
• Consumer Financial Protection Bureau — What is a car lease?

Disclaimer

This calculator is for informational purposes only. It is not a lease offer or financial advice. Confirm residual values, money factors, taxes, and fees with the dealer.