Car Lease Calculator
Estimate your monthly car lease payment from the price, residual value, money factor and term, and see the total cost of leasing.
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About the Car Lease Calculator
A car lease payment has three parts: depreciation (the drop in value during the lease), a finance charge based on the money factor and sales tax. This calculator uses the standard lease formula so you can compare offers and negotiate. Money factor equals the APR divided by 2,400.
How to use it
- Enter the negotiated price, down payment, MSRP and the residual value percentage.
- Enter the lease rate as an APR (or money factor × 2,400), the term and sales tax.
- Press Calculate lease to see the monthly payment and total cost.
Car lease formulas
- Depreciation = (capitalized cost − residual value) ÷ months
- Finance charge = (capitalized cost + residual value) × money factor
- Money factor = APR ÷ 2,400
- Monthly payment = depreciation + finance charge + sales tax
Lease or buy?
| Lease | Buy | |
|---|---|---|
| Monthly payment | Usually lower | Usually higher |
| Ownership | None at the end | You own the car |
| Mileage | Limited, with overage fees | Unlimited |
| Best for | New cars every few years | Long-term ownership |
Frequently asked questions
How is a car lease payment calculated?
Add the monthly depreciation, the monthly finance charge from the money factor and sales tax. The calculator above shows each part.
What is a money factor?
A small decimal that represents the lease interest rate. Multiply it by 2,400 to get an approximate APR.
What is a good residual value?
A higher residual value lowers your payment. Residuals of about 55% to 65% for a 36-month lease are typical for many vehicles.
Is it better to lease or buy a car?
Leasing suits drivers who want lower payments and a new car every few years. Buying costs more per month but builds ownership.
Can I negotiate a car lease?
Yes. You can negotiate the price, money factor and fees. The residual value is usually set by the lender.
Last reviewed: November 2026. Estimates only, not financial, tax or legal advice.