Dealer-style maths
Uses the same depreciation plus finance charge method that leasing companies use, then adds monthly sales tax.
Free auto finance tool · Instant estimate
Car Lease Calculator Monthly Payment, Money Factor, Due at Signing & Lease vs Buy
Enter the price, residual value and money factor to see your real monthly lease payment, including tax and fees. This free car lease calculator also shows what you pay at signing, your total cost and whether leasing or buying is cheaper.
- Dealer-style lease maths
- APR or money factor
- Lease vs buy comparison
Car lease calculator
Estimated monthly payment
$571.04/ month incl. tax
Due at signing: $2,571.04
- Depreciation$383.19
- Finance charge$150.49
- Sales tax$37.36
- Total lease cost
- $22,557
- Effective monthly cost
- $626.60
- Adjusted cap cost
- $36,995
- Residual value
- $23,200
- Money factor (APR)
- 0.00250 (6.00%)
- Excess mileage cost
- $0
Lease vs buy over 36 months
Calculating…
Features
See the whole lease, not just the payment
Dealers often quote a monthly figure and skip the details. This calculator shows every number behind it, so you can spot a good deal and negotiate with confidence.
APR or money factor
Enter whichever the dealer gives you. The calculator converts between them instantly so you can compare offers.
Due at signing
See exactly how much cash you need on day one, including the first payment, down payment and any upfront fees.
Trade-in and rebates
Positive equity lowers the cap cost, and negative equity is rolled in, just as it would be in a real contract.
Mileage overage
Estimate the end-of-lease bill if you drive more than your allowance, before you sign up for the wrong mileage.
Lease vs buy
Compare the true cost of leasing with financing the same car over the same period, including what the car is worth at the end.
How to use
How to use the car lease calculator
Enter the price
Add the MSRP and the price you negotiated. A lower negotiated price is the biggest lever on your payment.
Add money down
Include any down payment, rebates and trade-in, plus what you still owe on the trade.
Set lease terms
Choose the term, the residual from the lease offer and the APR or money factor.
Include tax and fees
Add your sales tax rate and fees, then choose whether to roll fees in or pay upfront.
Compare and decide
Review the breakdown, mileage cost and lease vs buy result, then copy the summary.
Formula
How a car lease payment is calculated
A lease payment has two parts: the value the car loses while you drive it, and a finance charge for using the lessor's money. Tax is then added on top.
Adjusted cap cost
Start with the negotiated price, add any fees you roll in, then subtract your down payment, rebates and trade-in equity.
price + fees − reductionsDepreciation fee
The amount the car is expected to lose, spread evenly over the term.
(cap cost − residual) ÷ monthsFinance charge
Also called the rent charge. It uses the money factor on the sum of cap cost and residual.
(cap cost + residual) × MFAdd sales tax
Most US states tax each monthly payment. Some tax the full price upfront, so check local rules.
(dep + finance) × (1 + tax)Reference
Money factor to APR chart
Multiply a money factor by 2,400 to get the equivalent APR, or divide an APR by 2,400 to get the money factor.
| Money factor | Equivalent APR | Money factor | Equivalent APR |
|---|---|---|---|
| 0.00100 | 2.40% | 0.00300 | 7.20% |
| 0.00125 | 3.00% | 0.00325 | 7.80% |
| 0.00150 | 3.60% | 0.00350 | 8.40% |
| 0.00175 | 4.20% | 0.00375 | 9.00% |
| 0.00200 | 4.80% | 0.00400 | 9.60% |
| 0.00225 | 5.40% | 0.00450 | 10.80% |
| 0.00250 | 6.00% | 0.00500 | 12.00% |
Glossary
Car lease terms explained
Capitalized cost
The price of the car in the lease, plus any fees rolled in. Like a purchase price, it can be negotiated.
Residual value
The car's estimated value at the end of the lease, set by the leasing company as a percentage of MSRP. A higher residual means a lower payment.
Money factor
The lease interest rate written as a small decimal. Dealers can mark it up, so ask for the base or buy rate.
Acquisition fee
A bank fee for setting up the lease. It can usually be paid upfront or rolled into the cap cost.
Disposition fee
A fee some lessors charge when you return the car at the end of the lease, often waived if you lease again.
Excess mileage
If you drive more than your allowance, you pay a per-mile or per-kilometre charge set in your contract.
Tips
How to get a better lease deal
Negotiate the price, not the payment
Agree on the cap cost first. A low monthly figure can hide a high price or a long term.
Ask for the buy-rate money factor
Compare the money factor × 2,400 with current car-loan rates to spot a markup.
Put little or nothing down
If the car is stolen or written off early, a large down payment may not come back.
Pick realistic mileage
Buying extra miles upfront is usually cheaper than paying excess charges at the end.
Favour high residual models
Cars that hold their value lease for less, even if their sticker price is higher.
Time your deal
Month-end, quarter-end and model-year changeovers often bring better incentives.
FAQ
Car lease calculator FAQ
How is a car lease payment calculated?
Subtract the residual value from the adjusted cap cost and divide by the number of months to get the depreciation fee. Add the finance charge, which is the cap cost plus the residual multiplied by the money factor. In most US states, sales tax is then added to that monthly amount.
What is a money factor and how do I convert it to APR?
The money factor is the interest rate on a lease written as a small decimal. Multiply it by 2,400 to get the approximate APR, so a money factor of 0.0025 equals 6% APR. Divide an APR by 2,400 to go the other way.
What is a good money factor?
It depends on your credit and current interest rates. Convert the money factor to an APR and compare it with car loan rates you qualify for. If it is noticeably higher, the dealer may have marked it up, so ask for the lender's base rate.
What is residual value?
Residual value is the car's estimated worth at the end of the lease, set by the leasing company as a percentage of MSRP. Because you only pay for the value the car loses, a higher residual means a lower monthly payment.
How much should I put down on a lease?
Many people put little or nothing down on a lease. A down payment lowers the monthly cost, but if the car is stolen or written off early, that money is usually not returned. Paying the first month, fees and taxes at signing is common.
Is sales tax included in the lease payment?
In most US states, sales tax is charged on each monthly payment, which is how this calculator works. Some states and provinces tax the full price or the total of payments upfront, so check the rules where you register the car.
What happens if I drive more than my mileage allowance?
You pay an excess mileage charge for every mile or kilometre over the limit when you return the car. The rate is set in your contract, often around 15 to 30 cents per mile in the US, so choose an allowance that matches how much you really drive.
Is it better to lease or buy a car?
Leasing usually means lower monthly payments and a new car every few years, but you never own it and you must stay within mileage limits. Buying costs more each month but builds equity. The comparison in this calculator shows which costs less over the same period for your numbers.
Results are estimates for planning and comparison. Actual lease terms, taxes and fees depend on the lender, your credit and local rules, so always check the final contract.
Walk into the dealership prepared
Run the numbers with the car lease calculator before you sign, and know exactly what a fair deal looks like. For more money tools, explore our free online tools.
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