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Car Lease Calculator

Work out a car lease payment the way leasing companies do, from the negotiated price, residual value and money factor, and check the deal’s real interest rate.

Set by the leasing company for your term and mileage.
APR ÷ 2,400. 0.0025 ≈ 6% APR.

$538.80Monthly lease payment for 36 months

Depreciation part$355.56
Finance charge (rent)$148.00
Sales tax$35.25
Residual value (buyout price)$23,200
Equivalent APR6%
Total of payments + down$21,397

Excess mileage and wear charges are extra. Some states tax the full price upfront instead of each payment.

How this calculator works

You pay for the car’s expected depreciation: (capitalized cost − down payment − residual value) ÷ months.

Plus a finance charge, called rent: (adjusted capitalized cost + residual) × money factor.

Multiply the money factor by 2,400 to get the equivalent APR. 0.0025 is about 6%.

Most states charge sales tax on each payment; some tax the full price upfront.

Worked example

$40,000 MSRP, $38,000 negotiated, $2,000 down, 58% residual, 0.0025, 36 months

  1. Depreciation: ($36,000 − $23,200) ÷ 36 = $355.56.
  2. Rent charge: ($36,000 + $23,200) × 0.0025 = $148.00.
  3. With 7% tax: about $538.80 a month.

Questions people ask

What can I negotiate on a lease?

The capitalized cost (price) most of all, and sometimes the money factor. The residual value is set by the leasing company.

Is a big down payment a good idea on a lease?

Usually not: if the car is stolen or totaled early, the down payment is often lost. Many advisers suggest putting little down.

Lease or buy?

Leasing gives lower payments and a new car every few years; buying is usually cheaper if you keep the car for many years.

What fees are extra?

Acquisition and disposition fees, excess mileage (often 15–25 cents a mile) and charges for unusual wear.

Last reviewed October 2, 2026