The Everything CalculatorCalculate, compare, and decide with confidence.Calculate, Compare, Decide

Auto Lease Calculator

Estimated Monthly Payment

$339.79

The Numbers

  • Residual value: $16,500.00
  • Depreciation fee: $319.44/mo
  • Finance fee: $1.11/mo
  • Total lease cost: $14,232.45

Compare Calculations

Downloads

Includes your inputs and results for this calculation, plus any additional calculations you've compared.

Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

A lease payment is built from two separate charges: a depreciation fee for the vehicle’s value lost over the lease, and a finance fee (similar to interest) on the amount financed. Enter the vehicle price, your down payment, the residual value (what the car is expected to be worth at lease-end, as a percent of its price), the lease term, and the APR, and this calculator returns your estimated monthly payment.

Unlike buying, a lease payment doesn’t cover the vehicle’s full price — only the portion of value it’s expected to lose while you’re driving it, plus a financing charge. That’s why a shorter lease or a higher residual value (meaning the car holds its value well) usually means a lower payment.

The Formula

Residual Value=Vehicle Price×(Residual Percent÷100)\vF{\text{Residual Value}} = \vA{\text{Vehicle Price}} \times (\vB{\text{Residual Percent}} \div 100) Depreciation Fee=Vehicle Price−Down Payment−Residual ValueLease Term\vG{\text{Depreciation Fee}} = \frac{\vA{\text{Vehicle Price}} - \vE{\text{Down Payment}} - \vF{\text{Residual Value}}}{\vC{\text{Lease Term}}}

Finance Fee=(Vehicle Price−Down Payment+Residual Value)×Money Factor\vH{\text{Finance Fee}} = (\vA{\text{Vehicle Price}} - \vE{\text{Down Payment}} + \vF{\text{Residual Value}}) \times \vD{\text{Money Factor}}, where Money Factor=APR÷100÷2400\vD{\text{Money Factor}} = \text{APR} \div 100 \div 2400 — the standard conversion between the two ways lease financing cost is quoted.

Monthly Payment=(Depreciation Fee+Finance Fee)×(1+Sales Tax Rate)\text{Monthly Payment} = (\vG{\text{Depreciation Fee}} + \vH{\text{Finance Fee}}) \times (1 + \text{Sales Tax Rate})

Worked Example

A $30,000 vehicle, $2,000 down, 55% residual value, a 36-month term, 6% APR, and 6% monthly sales tax:

  1. Residual value: $30,000×55%=$16,500\vA{\$30{,}000} \times 55\% = \vF{\$16{,}500}.
  2. Depreciation fee: ($30,000−$2,000−$16,500)÷36≈$319.44/month(\vA{\$30{,}000} - \vE{\$2{,}000} - \vF{\$16{,}500}) \div \vC{36} \approx \vG{\$319.44}\text{/month}.
  3. Money factor: 6÷100÷2400=0.0000256 \div 100 \div 2400 = \vD{0.000025}.
  4. Finance fee: ($28,000+$16,500)×0.000025≈$1.11/month(\$28{,}000 + \vF{\$16{,}500}) \times \vD{0.000025} \approx \vH{\$1.11}\text{/month}.
  5. Monthly payment before tax: $319.44+$1.11≈$320.56\vG{\$319.44} + \vH{\$1.11} \approx \$320.56.
  6. With 6% tax: $320.56×1.06≈$339.79/month\$320.56 \times 1.06 \approx \$339.79\text{/month}.

Source: Standard auto-leasing industry payment formula.

Frequently Asked Questions

What is a money factor?

The money factor is how lease financing cost is conventionally quoted — a small decimal, typically shown to you by a dealer. It's mathematically equivalent to APR ÷ 2400, which is how this calculator converts the more familiar APR you enter into that industry figure.

What is residual value?

The residual value is what the leasing company estimates the vehicle will be worth at the end of the lease, expressed as a percent of its original price. A higher residual value means less depreciation to pay for during the lease, which lowers your monthly payment.

Why does a shorter lease term usually mean a higher payment?

The same amount of depreciation (vehicle price minus residual value) gets spread across fewer months, so each monthly depreciation fee is larger — even though the total amount paid over the full lease may end up lower.