The Auto Lease Calculator can help estimate monthly lease payments based on total auto price or vice versa. To evaluate purchasing or loans in general, please use the Auto Loan Calculator.
• Select Total Price to compute your monthly lease payment based on agreed vehicle selling price and residual value.
• Select Monthly Payment to back-solve for the target vehicle price you can afford.
• Easily toggle between Money Factor (e.g. 0.001625) and equivalent Annual APR (e.g. 3.90%).
Equivalent APR: 3.90% (MF × 2,400)
Monthly sales tax levied on lease payments.
Estimated market value of the car at the end of the lease term.
$586.84
| Monthly Depreciation | $444.44 |
| Monthly Finance Charge | $104.00 |
| Monthly Sales Tax (7%) | $38.39 |
| Total Monthly Payment | $586.84 |
| Total of 36 Lease Payments | $21,126.08 |
| Upfront Capital Reduction (Down + Trade-in) | $10,000.00 |
| Total Lease Cost Over Term | $31,126.08 |
When leasing an automobile, you are not buying the whole car. Instead, you are paying for the estimated depreciation of the vehicle over the lease term, plus a finance charge (rent fee) assessed by the leasing company, and monthly sales taxes.
Depreciation represents the loss in vehicle value between the Net Capitalized Cost (price after down payment/trade-in) and the contractual Residual Value at lease conclusion, divided evenly across the term.
Lenders quote lease interest as a Money Factor (fractional decimal). To convert a Money Factor to standard APR, multiply it by 2,400 (e.g. 0.001625 × 2,400 = 3.90% APR).
A higher residual value percentage results in a lower monthly lease payment because the vehicle retains more value, minimizing the portion of depreciation you are required to pay.