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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

1Vehicle price

2Down payment and trade-in

3Lease terms

= $23,200 at lease end

Money factor 0.0025 (APR ÷ 2,400)

4Taxes and fees

Applied to each monthly payment.

5Mileage allowance

6Compare with buying

Buying uses the same price, down payment, trade-in and tax, with tax paid on the full price. The car is valued at the residual when the lease would end.

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

Lease$22,557
Buy–

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.

Dealer-style maths

Uses the same depreciation plus finance charge method that leasing companies use, then adds monthly sales tax.

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

  1. Enter the price

    Add the MSRP and the price you negotiated. A lower negotiated price is the biggest lever on your payment.

  2. Add money down

    Include any down payment, rebates and trade-in, plus what you still owe on the trade.

  3. Set lease terms

    Choose the term, the residual from the lease offer and the APR or money factor.

  4. Include tax and fees

    Add your sales tax rate and fees, then choose whether to roll fees in or pay upfront.

  5. 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.

Car lease calculator payment breakdown into depreciation, finance charge and sales tax
Worked exampleWith a $40,000 MSRP, a $38,000 price, $995 in fees rolled in and $2,000 down, the adjusted cap cost is $36,995. A 58% residual is $23,200. Depreciation is $383.19 a month, the finance charge at a 0.0025 money factor is $150.49, and 7% tax brings the payment to $571.04.
1

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 − reductions
2

Depreciation fee

The amount the car is expected to lose, spread evenly over the term.

(cap cost − residual) ÷ months
3

Finance charge

Also called the rent charge. It uses the money factor on the sum of cap cost and residual.

(cap cost + residual) × MF
4

Add 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 factorEquivalent APRMoney factorEquivalent APR
0.001002.40%0.003007.20%
0.001253.00%0.003257.80%
0.001503.60%0.003508.40%
0.001754.20%0.003759.00%
0.002004.80%0.004009.60%
0.002255.40%0.0045010.80%
0.002506.00%0.0050012.00%
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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