Auto Lease Calculator

How to use this calculator

1. Enter or choose mSRP (sticker price).
2. Enter or choose negotiated price.
3. Enter or choose down payment (cap cost reduction).
4. Enter or choose trade-in credit.
5. Enter or choose fees added to the lease.
6. The monthly payment updates as you type. Use Copy result or Share to keep it.

Method

Depreciation = (Cap cost − Residual) ÷ n; Rent charge = (Cap cost + Residual) × MF; Payment = (Depreciation + Rent charge) × (1 + tax); MF = APR ÷ 2400

Cap cost

negotiated price + fees − down payment − trade-in

Residual

MSRP × residual %

MF

money factor

n

lease term in months

Worked example

1. Residual = 40,000 × 55% = $22,000. Cap cost = 37,000 − 2,000 = $35,000.
2. Depreciation = (35,000 − 22,000) ÷ 36 = $361.11 a month.
3. Money factor = 4.8 ÷ 2400 = 0.002, so rent charge = (35,000 + 22,000) × 0.002 = $114.
4. Payment = 361.11 + 114 = $475.11 a month before any tax.

The lease costs $475.11 a month, or about $19,104 over three years including the $2,000 down payment.

What the result means

Most of a lease payment is depreciation, so a higher residual or a lower negotiated price cuts the payment most. A large down payment lowers the monthly figure but not the total cost, and it is lost if the car is written off early.

Assumptions and limits

• Payments are monthly, using the standard money-factor method most US lessors use.
• Tax, where entered, is charged on each monthly payment.
• Tax on the down payment, registration, the disposition fee at lease end and excess-mileage charges are not included.
• Some states and countries tax the whole price of the car up front instead of each payment.