Auto Lease Calculator
Lease payments hide inside two numbers dealers rarely emphasize: depreciation and the money factor. Enter the deal sheet figures to see the fair monthly payment and everything due at signing.
Your results
Charts & visualization
What you pay vs what the car is worth
The gap between these lines is the cost of using the car during the lease term.
Every chart’s underlying numbers are available as text — use the “view as table” control under each chart.
How it works
Every lease payment has two engines:
- Depreciation — the price drop the car suffers while you drive it: (net cap cost − residual) ÷ term.
- Rent charge — interest on the money tied up in the car: (net cap cost + residual) × money factor. The average-of-two-values structure is why leases quote a “money factor” instead of an APR.
The calculator reconstructs the standard payment, adds sales tax per payment where applicable, and totals everything you will pay across the term against the residual buyout price. If you expect to buy the car, comparing total lease cost plus the residual against a purchase loan is the honest apples-to-apples test.
Formula used
Net cap cost— agreed price + capitalized fees − cap reductionResidual— price × residual percentageMF (money factor)— APR ÷ 2400
Example calculation
On a $38,000 car with a 58% residual ($22,040), net cap cost of $35,500, and a money factor equivalent to 5.9% APR, the monthly depreciation is about $374 and the rent charge about $141. With 6% tax the payment lands near $546, with roughly $4,196 due at signing and $22,040 payable if you buy it out at the end.
Assumptions & limitations
- Closed-end consumer lease with the residual fixed by the manufacturer.
- Sales tax applied to each payment as most states require; some states tax differently.
- Disposition and excess-wear fees apply only at turn-in and are not included.
- Mileage limits (typically 10k–15k/year) carry per-mile penalties not modeled here.
Results are planning estimates based on your inputs and the stated assumptions — not financial advice or a loan offer. Verify important figures with your lender or advisor.
Frequently asked questions
Why is leasing sometimes cheaper per month?
You only pay for the depreciation that happens during the term plus rent on the money, not the whole car. The trade-off: you never build equity, and mileage or wear limits apply.
What money factor am I being charged?
Multiply the quoted money factor by 2400 to see the APR equivalent. A factor of 0.00246 is 5.9% APR. Dealers sometimes mark up the factor for extra profit — ask for the buy-rate.
Should I put money down on a lease?
Cap-cost reductions lower the payment, but cash on a leased car is at risk if the car is totaled early. Many lessees keep the cash and accept the higher payment.
Is it ever smart to lease then buy?
Only when the combined cost (payments + buyout) beats purchasing outright. Compare this calculator’s total lease cost plus residual against the auto loan calculator for the same car.