Car Lease Calculator
Use this car lease calculator to estimate a monthly lease payment from MSRP, negotiated selling price, lease term, residual value, money factor or APR, down payment, acquisition fee, dealer fees, other fees, and sales tax.
The calculator supports residual value as either a percentage of MSRP or a dollar amount, and it can convert APR to money factor using APR divided by 2400. Fees can be treated as paid upfront or rolled into the lease, so you can compare how the same quote changes monthly payment versus due at signing.
This is a planning estimate only. Lease taxes and fees vary by state, dealer, leasing company, and transaction structure. For purchase financing instead of leasing, compare the result with the Auto Loan Calculator.
Results are planning estimates only. Lease taxes, fees, residual values, money factors, incentives, due-at-signing amounts, and dealer structures can vary by state, dealer, and leasing company.
How to use this calculator
- Enter MSRP / sticker price and the negotiated selling price.
- Enter the lease term in months.
- Choose whether residual value is entered as a percentage of MSRP or as a dollar amount, then enter the residual value.
- Choose money factor or APR. If you enter APR, the calculator converts it to money factor using APR divided by 2400.
- Enter the down payment or cap cost reduction.
- Add acquisition, dealer, documentation, registration, and other fees.
- Choose whether fees are paid upfront or rolled into the lease.
- Enter a sales tax rate if you want the simplified monthly tax estimate. Leave tax as 0 if you want to compare pre-tax lease payments.
- Review the estimated monthly payment, depreciation charge, finance charge, tax estimate, due at signing, total lease cost, and effective monthly cost.
How it works
This calculator estimates a simplified monthly car lease payment from MSRP, negotiated selling price, residual value, lease term, money factor or APR, fees, down payment, and sales tax.
It is designed for comparing lease quote assumptions before or during shopping, not for reproducing every state tax rule, dealer add-on, incentive, or lender-specific lease program.
Core lease payment formula
Monthly payment = ((Adjusted cap cost - Residual value) / Lease term) + ((Adjusted cap cost + Residual value) x Money factor) + Monthly tax
Main inputs in the estimate
- Adjusted cap cost
- Negotiated selling price plus rolled-in fees minus cap cost reduction
- Residual value
- Estimated end-of-lease vehicle value, entered as a percentage of MSRP or a dollar amount
- Money factor
- Lease finance factor. When APR is entered, this calculator converts APR to money factor by dividing APR by 2400
What the lease estimate assumes
- Depreciation charge is adjusted cap cost minus residual value, divided by the lease term.
- Finance or rent charge is adjusted cap cost plus residual value, multiplied by the money factor.
- Sales tax is modeled as a simplified monthly tax on the base payment. State and local lease tax rules can differ.
- Due at signing includes upfront fees, cap cost reduction, and the first estimated monthly payment.
- This is a planning estimate only and not a dealer quote, lease approval, tax advice, legal advice, or personalized financial advice.
Assumptions and limitations
- This calculator estimates a basic closed-end car lease payment from the values entered. It does not guarantee a dealer quote or lease approval.
- Residual value can be entered as a percentage of MSRP or as a dollar amount.
- If APR mode is used, money factor is estimated as
APR / 2400. - Fees marked as rolled into the lease are added to gross capitalized cost. Fees marked as paid upfront are included in the due-at-signing estimate.
- Sales tax is modeled as a simplified monthly tax on the base lease payment. Some states tax monthly payments, some tax the selling price or depreciation amount, and dealer or leasing-company structures can change what is due upfront versus monthly.
- Due at signing includes upfront fees, cap cost reduction, and the first estimated monthly payment. Actual signing amounts may include other items.
- Trade-ins, rebates, incentives, security deposits, mileage charges, excess wear charges, disposition fees, dealer add-ons, and state-specific tax engines are not modeled in this first version.
- This calculator is for education only and is not a dealer quote, lease offer, approval decision, tax calculation, legal advice, or personalized financial advice.
Leasing vs buying
Leasing and buying use different math. A lease payment is driven by adjusted cap cost, residual value, money factor, term, fees, and taxes. A loan payment is driven by amount financed, APR, and term.
Use the Auto Loan Calculator to compare a purchase payment with the same vehicle price. Use the Car Affordability Calculator if you want to work backward from a monthly car budget before deciding whether a lease or loan structure fits.
For broader shopping context, see the Auto Financing topic.
Frequently asked questions
How does this car lease calculator estimate the payment?
It estimates the depreciation charge, finance or rent charge, and a simplified monthly sales tax amount. Depreciation is based on adjusted capitalized cost minus residual value. The finance charge uses adjusted cap cost plus residual value multiplied by the money factor.
What is money factor?
Money factor is the lease finance factor used to calculate the rent charge. A rough APR equivalent is money factor multiplied by 2400. If you enter APR in this calculator, it converts APR to money factor by dividing APR by 2400.
Should residual value be entered as a percent or dollar amount?
Use the percent mode when the lease quote gives residual as a percentage of MSRP. Use dollar mode when the quote gives a specific residual amount. Both modes should produce the same result when the dollar amount matches the percentage of MSRP.
What does rolled into lease mean for fees?
Rolled-in fees are added to the gross capitalized cost, which increases the monthly payment. Fees paid upfront do not raise the adjusted cap cost, but they increase the due-at-signing estimate.
Does this calculator handle state-specific lease taxes?
No. Some states tax monthly payments, some tax part or all of the vehicle price, and dealer or leasing-company rules can affect the final structure. This calculator uses a simplified monthly tax assumption for planning.
Is due at signing the same as total cash needed at the dealer?
Not always. This estimate includes upfront fees, cap cost reduction, and the first estimated monthly payment. Actual due-at-signing amounts can include deposits, DMV charges, taxes, rebates, incentives, trade-in treatment, or dealer-specific items not modeled here.
Is this a dealer quote or lease approval?
No. This is an educational planning estimate only. Actual lease payments, money factors, residual values, taxes, fees, incentives, and approval terms can differ from this calculation.
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