Car Lease Calculator

Estimate a car lease payment from the price, residual value and money factor, see what is due at signing and what the lease costs in total, and compare it with buying the same car with a loan. Your inputs stay in your browser.

Your lease and loan details

The car

The residual is a percent of this.

The capitalized cost before fees and down payment.

The lease

Set by the leasing company; often about 50% to 60% for 36 months.

Money factor × 2,400. A money factor of 0.0025 is 6%.

For example an acquisition fee rolled into the lease.

Many states tax each payment; some tax differently.

Buying instead

$538.64/month for 36 months · $3,538.64 due at signing. See full results

Example: a $40,000 MSRP car negotiated to $38,000, 58% residual, a 6% lease rate for 36 months and $3,000 down, compared with a 6.5% loan over 60 months (illustrative figures, not a quote). Enter your numbers to update.

Your lease estimate

Monthly lease payment
$538.64
For 36 months, tax included
Due at signing
$3,538.64
Down payment, fees at signing and the first payment
Total cost of the lease
$22,391.13
Everything you pay; you return the car
Rent charge (finance cost)
$5,327.55
Money factor 0.00250

How the monthly payment is built

ItemAmount
Adjusted capitalized cost $35,995.00
Residual value $23,200.00
Depreciation per month $355.42
Rent charge per month $147.99
Tax per month $35.24
Monthly payment $538.64

Lease or buy?

Over 36 months, leasing costs about $1,615 less than buying, counting the buyer's equity in the car.

Leasing vs. buying over 36 months

ItemLeaseBuy with a loan
Monthly payment $538.64$756.33
Cash paid over the term $22,391$30,228
Equity at the end (car value − loan balance) $0$6,221
Net cost over the term $22,391$24,006

Assumes the car is worth its residual value when the lease ends, and ignores mileage and wear charges, maintenance and insurance differences. The buyer still owes $16,979 on the loan at that point.

How a lease payment is calculated

Most of a lease payment covers the car's expected loss in value over the lease; the rest is a rent charge for the money tied up in the car, plus tax and fees (CFPB: leasing versus buying).

  1. Adjusted capitalized cost = negotiated price + fees added to the lease − down payment − trade-in equity: $35,995.00 in the example.
  2. Residual value = MSRP × residual %: $23,200.00.
  3. Depreciation = (adjusted cap cost − residual) ÷ months = $355.42 a month.
  4. Rent charge = (adjusted cap cost + residual) × money factor = $147.99 a month. The money factor is the rate ÷ 2,400, so 6% is 0.00250.
  5. Payment = depreciation + rent charge, plus sales tax where your state taxes lease payments: $538.64.

What moves the payment

  • Residual value: at 50% instead of 58%, the payment rises to $625.19, because you pay for more of the car's value.
  • Money factor: a 9% rate instead of 6% makes it $617.82. Ask for the money factor and convert it to an APR to compare it with loan offers.
  • Price: the price of a leased car is negotiable, like a purchase price, and every dollar off lowers depreciation.

Leasing versus buying

Lease payments are usually lower than loan payments, but at the end of a lease you return the car and own nothing, while a loan builds equity. To compare them fairly, the calculator counts the buyer's equity when the lease would end, assuming the car is then worth its residual value. In the example, over 36 months leasing costs about $1,615 less; at a 9% lease rate, buying costs about $1,235 less. Keeping a car well beyond the loan term usually favors buying. Our auto loan calculator shows the full loan in detail.

What this calculator does not include

  • Excess mileage and wear-and-tear charges, disposition fees at lease end, and early termination costs. Check your lease's mileage limit.
  • State-specific lease taxes other than a tax on each payment, and differences in insurance or maintenance.
  • The car's actual value at lease end, which can be above or below the residual.

Results are estimates, not an offer. Your lease disclosure lists the actual amounts.

Methodology and testing

The loan side uses the same tested engine as our auto loan calculator. Automated tests compare the lease payment, total cost and lease-vs-buy result with an independent implementation. How we build and test calculators.

Sources

  • Auto Loan Calculator

    Car payment with tax, fees and trade-in, or the car price a monthly budget affords; amount financed, term comparison and amortization.

  • Auto Loan Refinance Calculator

    New car payment, total savings after fees and penalties, true break-even counting the balance owed, and the cost of a longer term.

  • Loan Payment Calculator

    Monthly payment, total interest, term comparison, extra-payment savings and a full amortization schedule.