Calculate your monthly car lease payment by entering the auto price, down payment, residual value, interest rate, and lease term. You'll get your estimated monthly payment along with a breakdown of the depreciation fee, finance fee, and total lease cost — so you know exactly what you're paying for.
Monthly Lease Payment
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Monthly Depreciation Fee
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Monthly Finance Fee
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Monthly Tax
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Total Lease Cost
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Total Depreciation
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Total Finance Charges
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A lease payment has two main components: the depreciation fee and the finance fee. The depreciation fee is the vehicle's net capitalized cost minus the residual value, divided by the lease term. The finance fee is the sum of the net cap cost and residual value multiplied by the money factor. These are added together, then sales tax is applied.
Residual value is the estimated worth of the vehicle at the end of the lease term, set by the leasing company. A higher residual value means you're financing less depreciation, which results in lower monthly payments. Residual values are typically expressed as a percentage of the vehicle's MSRP.
The money factor is a way of expressing the interest rate on a lease, similar to APR on a loan. To convert a money factor to an equivalent annual interest rate, multiply it by 2,400. For example, a money factor of 0.00271 equals approximately 6.5% APR. Dealers may use money factor instead of interest rate when quoting lease terms.
Leasing typically offers lower monthly payments than financing a purchase, and you always drive a newer vehicle. It can be a smart option if you prefer not to deal with long-term ownership, depreciation, or selling the car later. However, you build no equity in a leased vehicle, and there are usually mileage limits and wear-and-tear fees.
Yes, a larger down payment (called a capitalized cost reduction) lowers the net cap cost, which reduces your monthly depreciation fee. However, from a financial risk standpoint, putting a large amount down on a lease is generally not recommended — if the car is totaled, you may not recover that upfront cash.
At the end of a lease you typically have three options: return the vehicle, purchase it at the pre-agreed residual value, or trade it in toward a new lease. If you've exceeded the allowed mileage or there is excessive wear and tear, additional fees may apply before returning the car.
This depends on the state. In most states, sales tax is applied only to the monthly lease payment rather than the full vehicle price — which is one of the tax advantages of leasing. A few states require tax on the full capitalized cost upfront. This calculator applies tax to each monthly payment.
The MSRP (Manufacturer's Suggested Retail Price) is the sticker price of the vehicle. The net capitalized cost is the negotiated selling price minus any down payment or trade-in value. Lowering the cap cost through negotiation or a larger down payment directly reduces your monthly payment.