Auto Lease Calculator
Estimate monthly lease payment.
Inputs
$
%
mo
$
Result
Monthly Payment$594.44
Depreciation$444.44
Finance Charge$150.00
Total Lease Cost$23,400.00
About the Auto Lease Calculator
The Auto Lease Calculator estimates the monthly payment on a car lease, including depreciation and finance charge, plus total lease cost over the term.
Calculation method
Depreciation = (Capitalized cost − Residual) ÷ Months. Finance charge = (Cap cost + Residual) × Money factor. Payment = Depreciation + Finance charge (pre-tax).
Payment = (Cap − Residual)/Months + (Cap + Residual) × MF
APR ≈ MF × 2400How to use this calculator
- Enter the MSRP and any down (capitalized cost reduction).
- Enter the residual percentage from the lease contract.
- Enter the money factor and lease term in months.
Example
A $40,000 MSRP with 55% residual, 0.0025 money factor, 36 months, and $2,000 down gives depreciation of about $500, finance charge of about $150, and a payment near $650 per month before tax.
Frequently asked questions
What is a money factor?
It is the lease equivalent of an interest rate. Multiply by 2,400 to convert to an approximate APR (0.0025 ≈ 6% APR).
Is it better to lease or buy?
Leasing has lower payments and lets you drive a new car every 2–3 years, but you never build equity. Buying costs more upfront and monthly but is cheaper long-term.
What is a good residual value?
55–65% for a 36-month lease is strong. Higher residual means less depreciation to pay for and a lower monthly payment.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.