Auto Lease Calculator
Monthly lease payment from price, down payment, residual, money factor, and tax.
What it does
Leasing pays for the slice of a car used during the term plus the lender rent charge, not the whole vehicle. The depreciation slice is the adjusted price minus the residual, split over the months, while the rent charge prices the money tied up in the car.
The tool above takes price, down payment, residual, term, money factor, and tax. It returns the monthly payment with the lifetime total and the depreciation plus rent split beside them.
The default $30,000 car with $2,000 down, $18,000 residual, 36 months, 0.0025 factor, and 7% tax pays $420.27 a month and $17,129.80 all in. Depreciation runs $277.78 with rent at $115.00 inside each base payment.
The structure follows the Federal Reserve vehicle leasing guide with the Consumer Financial Protection Bureau lease disclosure rules matching each term. Both define depreciation as adjusted cost minus residual and rent from the money factor.
How to use
- Enter the agreed vehicle value including rolled in fees.
- Enter down payment and the contract residual value.
- Enter the term in months, usually 24 to 48.
- Enter the money factor (ask the dealer, or divide APR by 2400).
- Read monthly first, then total cost before signing.
Formula
- adjusted
- Capitalized cost after the down payment.
- residual
- End value estimate that the lessee does not pay for.
- factor
- Money factor: APR divided by 2400.
Zero down is allowed and raises monthlies without changing the structure. The residual must sit below the adjusted cost or there is nothing to depreciate, which the tool rejects with a plain message.
Worked example
Example: $30,000 car, 36 months
Cap 30000, down 2000, residual 18000, term 36, factor 0.0025, tax 7%.
- Adjusted cost: 30,000 - 2,000 = $28,000.00.
- Depreciation: (28,000 - 18,000) / 36 = $277.78 a month.
- Rent: (28,000 + 18,000) x 0.0025 = $115.00 a month (0.0025 x 2400 = 6% APR).
- Monthly: (277.78 + 115.00) x 1.07 = $420.27.
- Total: 420.27 x 36 + 2,000 = $17,129.80.
- Tool shows $420.27, $17,129.80, and $277.78 depreciation + $115.00 rent.
Reference table
| Down / residual | Monthly | Total |
|---|---|---|
| $2,000 / $18,000 | $420.27 | $17,129.80 |
| $0 / $18,000 | $485.07 | $17,462.40 |
| $2,000 / $20,000 | $366.18 | $15,182.40 |
Limits
- Quoted payment only; wear, mileage, and end fees sit outside.
- Fixed factor assumed; credit tier moves the real number.
- Tax rules differ by state: some tax each payment, some the full price.
- Mileage over the allowance bills at the contract per mile rate.
Common mistakes
- Judging a lease by monthly alone without the total cost.
- Putting big money down to chase a monthly, then losing it if the car is totaled.
- Ignoring the mileage allowance until the end bill lands.
- Confusing money factor with APR (multiply by 2400 to compare).
- Rolling negative equity in without pricing its full effect.
Try it yourself
Quick checks. Answers sit tucked under each question.
$25,000 cap, $1,000 down, $15,000 residual, 36 mo, 0.002 factor, no tax?
Depreciation $250.00, rent $78.00: $328.00 a month, $12,808.00 total.
6% APR as a money factor?
6 / 2400 = 0.0025.
Residual above the adjusted cost?
Rejected: residual must sit below the adjusted capitalized cost.
Questions
How is a lease payment calculated?
Depreciation share plus rent charge, then tax. On the example that is $277.78 plus $115.00 times 1.07.
What is a money factor?
The lease finance rate as a small decimal. Multiply by 2400 for the matching APR.
Does a bigger down payment help?
Yes, it trims both depreciation and rent. Here $2,000 down saves about $65 a month against zero down.
What is the residual?
The lessor end value estimate. Higher residuals cut depreciation and monthlies but raise the buyout price.
Lease or buy?
Leasing costs less monthly for a new car every few years; buying wins for long ownership with no mileage caps.
Is tax on the payment or the price?
Most states tax each monthly payment. A few tax the full price upfront, which changes the total.