Car Lease Calculator
Estimate a monthly car lease payment with sales tax, fees, rebates, trade-in and mileage, see the amount due at signing and the total lease cost, or find the price that hits a target payment.
How it works
Adjusted cap cost = price + capitalized fees + negative equity − (down + rebates + trade-in equity) · Monthly = (adjusted cap cost − residual) ÷ months + (adjusted cap cost + residual) × money factor · Monthly tax = base payment × tax rate · Money factor = APR ÷ 2400
A lease charges you for the depreciation you use plus a finance fee on the money tied up in the car. Start from the negotiated price, add any fees you roll into the lease and any negative equity from a trade-in, then subtract your down payment, rebates and trade-in equity: that is the adjusted capitalized cost. The depreciation part spreads the drop from the adjusted cap cost to the residual value (a percent of MSRP set by the lessor) over the term. The finance part, the rent charge, applies the money factor to the sum of the adjusted cap cost and the residual, which is why the money factor times 2400 gives the equivalent APR. Most US states then charge sales tax on each monthly payment and tax the down payment and rebates at signing; a few tax the total of payments or the full price upfront, which you can choose under More options. The amount due at signing adds the first payment, the down payment, any fees and taxes paid upfront and a refundable security deposit. The total lease cost adds every payment, the cash you put in, trade-in equity, the disposition fee and an estimate of excess-mileage charges, and dividing it by the term gives the effective monthly cost — the fairest way to compare two offers. Switch to “Price for a target payment” to work backwards from the payment you want to the price you need to negotiate.
Worked example
A car with a $35,000 MSRP negotiated to $33,000, a 55% residual ($19,250), a 0.00125 money factor (3% APR), 36 months and $2,000 down: the adjusted cap cost is $31,000, depreciation is ($31,000 − $19,250) ÷ 36 = $326.39 and the rent charge is ($31,000 + $19,250) × 0.00125 = $62.81, so the base payment is $389.20. With 7% sales tax on each payment ($27.24) the monthly figure becomes $416.45, and tax on the $2,000 down adds $140 at signing, so $2,556.45 is due at signing. Over 36 months the lease costs $17,132.04 in all, an effective $475.89 a month. Working backwards with no tax, a $350 target payment on the same car needs a negotiated price of about $31,650.
Frequently asked questions
What is a money factor?
It is the lease version of an interest rate, written as a small decimal like 0.00125. Multiply it by 2400 to get the rough APR — 0.00125 × 2400 = 3%. You can enter either form; the calculator shows the other one in the results.
Why is a high residual value good for a lease?
The residual is what the car is predicted to be worth at lease-end. A higher residual means less depreciation for you to pay across the term, which lowers the monthly payment. It is set by the lessor as a percent of MSRP, so use the MSRP, not your negotiated price, for the residual.
How is sales tax charged on a lease?
In most US states tax is added to each monthly payment, and the down payment and cash rebates are taxed at signing. Some states tax the total of the lease payments upfront, and a few, such as Texas, tax the full selling price. Pick the method under More options; the results show the monthly tax, the tax due at signing and the total.
What is due at signing?
Usually the first month’s payment, your down payment, any acquisition, dealer and government fees you do not roll into the lease, upfront taxes and a refundable security deposit. The calculator lists each item in the Due at signing table.
How do I compare two lease offers fairly?
Compare the effective monthly cost: the total lease cost (all payments plus cash at signing, trade-in equity and end-of-lease charges) divided by the number of months. A lower payment with a big down payment can cost more than a slightly higher payment with nothing down.
What happens if I drive more than the mileage allowance?
The lessor charges for every mile (or kilometre) over the allowance when you return the car, often $0.15 to $0.30 a mile. Enter the allowance, the distance you expect to drive and the charge under More options to see the estimated bill, and consider buying extra miles upfront if it is large.
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Educational estimate, not financial advice — dealer terms, fees and taxes vary.