Auto Lease Calculator – Estimate Your Car Lease Payment
Use this free auto lease calculator to estimate your monthly car lease payment. Enter the capitalized cost (negotiated price), residual value, lease term in months and APR. The tool applies the standard lease formula with money factor (APR ÷ 2400) to show your payment, depreciation fee, finance fee and total lease cost. No sign-up required.
Auto Lease Calculator
Estimate your monthly car lease payment from capitalized cost, residual value, lease term and APR. Money factor is derived as APR ÷ 2400.
How the auto lease formula works
Car leases use two main components: depreciation and financing. The depreciation fee reflects how much the car loses in value over the lease term. The finance fee is the cost of borrowing, similar to interest on a loan.
Depreciation Fee = (Cap Cost − Residual) ÷ Term
Finance Fee = (Cap Cost + Residual) × Money Factor
Money Factor = APR ÷ 2400
Monthly Payment = Depreciation Fee + Finance Fee
- Cap Cost = negotiated price after down payment, trade-in, rebates
- Residual = projected value at lease end (set by lessor)
- Term = lease length in months (e.g. 36)
- APR = annual percentage rate (converted to money factor)
Understanding car leases and how to use this calculator
Leasing a car is an alternative to buying. Instead of financing the full purchase price, you pay for the vehicle's depreciation during the lease term plus a finance charge. At the end of the lease, you return the car (or buy it at the residual value). Monthly payments are typically lower than a purchase loan because you are not paying for the entire car—only the portion you use.
Before visiting a dealer, gather the key numbers: the car's selling price (or MSRP if you prefer to start there), any down payment or trade-in value, and the lease terms the dealer is offering. The capitalized cost is the selling price minus your down payment and trade-in. The residual value is usually expressed as a percentage of MSRP—for example, 55% after 36 months. Multiply that percentage by the car's value to get the residual in dollars. The APR (or money factor) is the lease's interest rate equivalent.
Enter these values into the auto lease calculator to see your estimated monthly payment. You can then compare different scenarios: a larger down payment lowers the cap cost and thus the payment; a longer term spreads depreciation over more months but may increase the total cost. Some lessors offer incentives that reduce the cap cost or the money factor, so always ask about special programs.
Be aware of lease limitations. Most leases have mileage limits (e.g. 12,000 miles per year); exceeding them incurs fees. Excess wear and tear can also result in charges at lease end. If you prefer to own your vehicle long-term or drive high mileage, a purchase may be more economical. Use our Car Loan Calculator to compare the total cost of buying versus leasing over the same period.
This calculator provides estimates based on the standard lease formula. Actual dealer quotes may include taxes, fees, acquisition charges and other items not reflected here. Use the results as a baseline for negotiation and always review the full lease agreement before signing.