Auto Lease Calculator - Estimate Monthly Payments

Auto Lease Calculator

Estimate your monthly lease payments and understand the true cost of leasing a vehicle.

Lease Estimator

Vehicle Price & Costs
$
Used to calculate residual value.
$
The actual price you agree to pay (Cap Cost).
Credits & Terms
Cap Cost Reduction.
%
%
Car value at end.
%
Or Money Factor * 2400.
Lease or Buy? Compare this lease payment with a standard loan using our Auto Loan Calculator.
Estimated Monthly Payment (Inc. Tax)
$0.00
Pre-tax Payment: $0.00
Cost Analysis
Total Lease Cost: $0
Total Interest (Rent Charge): $0
Total Sales Tax: $0
Residual Value (End): $0
Money Factor: Your APR of 0% is equivalent to a Money Factor of 0.00000.

How Auto Leasing Works

Leasing a car is fundamentally different from buying one. When you buy, you pay for the entire vehicle. When you lease, you only pay for the **depreciation** of the vehicle during the time you use it (plus interest and fees). This typically results in lower monthly payments compared to buying, but you don't own the car at the end.

Key Terms You Must Know

Capitalized Cost
The "Agreed Upon Value" of the vehicle. Think of this as the purchase price. Negotiating this down lowers your monthly payment.
Residual Value
The estimated value of the car at the end of the lease. This is set by the lender (not the dealer) and is usually non-negotiable. Higher residual = Lower payment.
Money Factor
This is the interest rate presented in a different format. To convert Money Factor to APR, multiply by 2,400. (e.g., 0.0025 × 2400 = 6% APR).

The Lease Formula

Your monthly payment is composed of three parts:

  1. Depreciation Fee: (Net Cap Cost - Residual) ÷ Term
  2. Finance Fee (Rent Charge): (Net Cap Cost + Residual) × Money Factor
  3. Sales Tax: Usually added to the monthly payment (varies by state/region).

Lease vs. Buy

Lease if: You like driving a new car every 2-3 years, want to stay under warranty, and have stable, predictable mileage usage.
Buy if: You drive a lot of miles (avoiding over-mileage penalties), want to modify the car, or plan to keep the car for many years to be payment-free eventually.

Disclaimer & Legal Notice

Estimations Only: This calculator provides an estimate based on standard leasing formulas. It assumes sales tax is paid monthly on the payment amount, which is common in many US states but not all (some states tax the full vehicle price upfront).

Fees Not Included: Actual lease contracts include acquisition fees, documentation fees, and registration costs which are often rolled into the Capitalized Cost.

No Liability: We are not a lender or auto dealer. Do not rely solely on this tool for financial decisions. Always review the official lease agreement.