Auto lease calculator
Monthly car lease payment from price, residual value and money factor.
About this calculator
This auto lease calculator estimates the monthly payment on a car lease. Enter the price, your down payment and trade-in, the residual value and the rate.
It splits the payment into depreciation, finance charge and tax, so you can see what you are paying for.
How it works
A lease payment is depreciation, (net price − residual value) ÷ months, plus a finance charge, (net price + residual value) × money factor, plus tax. The money factor is the APR ÷ 2,400.
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Worked example
- Vehicle price: $40,000
- Down payment: $3,000
- Fees added to the lease: $895
- Term: 36 mo
- Residual value: 58% of the price
- Interest rate (APR): 6% a year
- Sales tax on payments: 7%
Monthly lease payment: $600.20 (for 3 yr)
Common questions
What is a residual value?
What the car is expected to be worth at the end of the lease, set by the leasing company as a percentage of the price. A higher residual means lower payments.
What is a money factor?
The lease's interest rate in another form. Multiply it by 2,400 to get the APR: a money factor of 0.0025 is a 6% APR.
Is it better to lease or buy?
Leasing usually costs less each month and lets you change cars often, but you own nothing at the end and pay for extra miles. Buying costs more at first but is often cheaper over many years.
Sources and further reading
The story behind it
Where the idea came from: Car leasing took off in the US in the 1980s and 1990s, as lower monthly payments made new cars easier to afford.
A lease means paying for the part of the car's value you use, plus interest, rather than for the whole car. That simple idea makes payments lower, but the terms can be hard to follow. This calculator lays the pieces out one by one.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
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