Auto Lease Calculator — Monthly Payment & Total Cost
Enter the vehicle MSRP, your down payment, the residual value percentage, APR and term to instantly see your estimated monthly lease payment broken down into depreciation, finance charge and tax.
%
%
months
%
Depreciation + finance charge + sales tax per month
557.01
per monthDepreciation
63.3%
Finance charges
25.2%
Tax
0%
Down payment + fee
11.5%
- 1
Residual value
35,000 × 55% = 19,250 - 2
Net cap cost
35,000 − 2,000 + 595 = 33,595 - 3
Money factor
7.2% ÷ 2400 = 0.003Money factor = APR ÷ 2400; multiply any money factor by 2400 to get APR. - 4
Monthly depreciation
(33,595 − 19,250) ÷ 36 = 398.47 - 5
Monthly finance charge
(33,595 + 19,250) × 0.003 = 158.54 - 6
Monthly payment
398.47 + 158.54 + 0 = 557.01
How does this calculator work?
Monthly lease payment = [(Net Cap Cost − Residual) / Term] + [(Net Cap Cost + Residual) × Money Factor] + tax. Money Factor = APR ÷ 2400. Net Cap Cost = MSRP − down payment + acquisition fee. A higher residual and lower money factor cut your payment. Residuals and fees are 2024–2025 estimates — verify with your dealer.
Formula
How this is calculated
A car lease splits the vehicle cost into two components. The depreciation fee covers the value the car loses during your lease: (Net Capitalised Cost − Residual Value) ÷ Term. The net cap cost is the agreed selling price minus your down payment plus any dealer fees. The residual value (set by the leasing company as a percentage of MSRP) is what the car is worth at lease end — a higher residual means a lower monthly payment.
The finance charge is interest on the capital you are effectively borrowing: (Net Cap Cost + Residual Value) × Money Factor. Money Factor = APR ÷ 2400; multiply any money factor by 2400 to get the equivalent APR. Adding both fees and sales tax (which in most US states applies to the monthly payment, not the full price) gives the monthly payment shown here.
Residual value percentages and acquisition fees are estimates from 2024–2025 US lease market norms; your dealer's contract is the authoritative source. Some states tax the full vehicle price rather than the monthly payment — check your state rules and enter 0 in the tax field if you need to calculate it separately. This calculator does not include drive-off fees, registration or insurance.
Frequently asked questions
The money factor is the leasing equivalent of an interest rate. It represents the finance charge per dollar of average capital outstanding during the lease. To convert: Money Factor = APR ÷ 2400, or APR = Money Factor × 2400. A money factor of 0.00300 equals an APR of 7.2 %.
A higher residual value means you are only paying for less depreciation over the lease term, so your monthly payment is lower. Leasing is most cost-effective for vehicles with high residuals (typically 55–65 % of MSRP after 36 months). The residual is set by the lender, not the dealer.
A large down payment reduces monthly payments but does not reduce total cost proportionally — and if the car is stolen or totalled early, you may not recover that money. Financial advisers often suggest keeping lease down payments small (under one monthly payment) for this reason.
Also known as
TG we-Calculate Editorial Team. (2026). Auto Lease Calculator — Monthly Payment & Total Cost [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/lease-calculator
TG we-Calculate Editorial Team. "Auto Lease Calculator — Monthly Payment & Total Cost." TG we-Calculate. 2026. https://we-calculate.com/calculator/lease-calculator.
TG we-Calculate Editorial Team, "Auto Lease Calculator — Monthly Payment & Total Cost," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/lease-calculator
@misc{wecalculate_lease_calculator, title = {Auto Lease Calculator — Monthly Payment & Total Cost}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/lease-calculator}}, year = {2026}, note = {TG we-Calculate} }
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