Home›Finance Tools›Auto Lease Calculator
Car Lease Payment

Auto Lease Calculator

Estimate your monthly car lease payment using the standard depreciation-fee and finance-fee method that dealers use, including money factor and sales tax.

Advertisement

Lease Details

Result


Enter lease details to calculate your monthly payment
⚠️

Disclaimer: This calculator provides an estimate for educational purposes only and is not financial advice. Actual lease terms, fees, taxes, and money factors vary by dealer, lender, and jurisdiction. Review your official lease agreement before signing.

About the Auto Lease Calculator

Car lease payments are made up of two components: a depreciation fee (the vehicle’s expected loss of value over the lease term) and a finance fee (the rent charge, similar to interest, based on the money factor).

Understanding Money Factor

The money factor is the leasing equivalent of an interest rate, typically shown as a small decimal (e.g. 0.00125). To convert money factor to an approximate APR, multiply by 2,400.

How It Works

Depreciation fee = (Net Capitalized Cost − Residual Value) ÷ Term. Finance fee = (Net Capitalized Cost + Residual Value) × Money Factor. These are added together for your base monthly payment, then sales tax is applied per your local jurisdiction’s rules.

Frequently Asked Questions

Residual value is the car's projected worth at the end of the lease term, set by the leasing company. A higher residual value generally means a lower monthly payment, since you're only paying for the depreciation down to that value.
Multiply the money factor by 2,400. For example, a money factor of 0.00125 is roughly equivalent to a 3% APR (0.00125 × 2400 = 3).
Yes, a larger down payment (capitalized cost reduction) lowers both the depreciation fee and finance fee, reducing your monthly payment — but you lose that money if the car is totaled early, so many advisors recommend minimizing lease down payments.
Leasing typically has lower monthly payments than financing a purchase, but you build no equity and face mileage limits and wear-and-tear charges. Compare total cost of ownership over your expected time horizon before deciding.
Advertisement