Auto Lease Calculator
Lease Details
Lease Results
| Estimated Monthly Payment | — |
|---|---|
| Monthly Depreciation Fee | — |
| Monthly Rent Charge (Interest) | — |
| Monthly Sales Tax | — |
| Total Cost of Lease (including Down Payment & Trade) | — |
Leasing vs. Buying Comparison
Side-by-side cost breakdown assuming purchasing the vehicle with an auto loan over the same term and rate.
| Cost Component | Lease Vehicle | Buy Vehicle (Loan) |
|---|---|---|
| Monthly Payment | — | — |
| Upfront Cost (Down payment + Trade-in) | — | — |
| Total Term Payments (Monthly Pay × Term) | — | — |
| Vehicle Value at End of Term | $0.00 (Owned by lessor) | — (Residual Value) |
| Net Ownership Cost (Payments - End Value) | — | — |
How to Use This Auto Lease Calculator
Lease quotes arrive as a single monthly number, but the math underneath splits into depreciation and rent charge—and the residual value the bank sets can move that payment by more than negotiation on the selling price. Use Total Price Mode when you know the MSRP, or Monthly Payment Mode when the dealer quoted you a target payment. The lease-vs-buy table at the bottom answers the question everyone actually cares about.
- Choose Total Price or Monthly Payment mode. Same dual-mode logic as the auto loan calculator.
- Enter lease term and rate. Use money factor (default) or switch to interest rate percent—the label updates automatically.
- Add down payment, trade-in, sales tax, and residual value. Residual is what the car is worth at lease end per the lessor's schedule.
- Press Calculate. Review depreciation fee, rent charge, tax, total lease cost, and the side-by-side buy comparison.
Financing instead of leasing? Try the Auto Loan Calculator or compare incentives on the Cash Back or Low Interest Calculator.
Auto Lease Formulas and Practical Applications
Leasing is paying for the slice of the car you use plus the bank's financing cost—like renting an apartment where you cover the landlord's mortgage interest on your unit. You never build equity; at lease end the vehicle goes back unless you buy it out.
Depreciation and rent charge
Net Cap Cost = Price − Down Payment − Trade-In
Monthly Depreciation = (Net Cap Cost − Residual) / Term Months
Monthly Rent Charge = (Net Cap Cost + Residual) × Money Factor
Money factor 0.00208 × 2400 ≈ 5% APR equivalent. On a $50,000 vehicle with $10,000 down, $24,000 residual, and a 36-month term, depreciation runs about $444/month before rent charge and tax.
Sales tax on leases
Most states tax the monthly lease payment rather than the full vehicle price. This calculator applies your sales tax percentage to the pre-tax monthly base (depreciation plus rent charge).
Lease vs buy comparison
The comparison table models buying the same vehicle with a loan over the same term, then nets end-of-term vehicle value against total payments. Leasing wins on monthly cash flow; buying wins when you plan to keep the car past the loan payoff and retain resale value.
Frequently Asked Questions
What is a money factor on a car lease?
The money factor is the lease interest rate expressed as a decimal. Multiply by 2400 to approximate the equivalent APR—for example, 0.00208 equals about 5% APR.
How is the monthly lease payment calculated?
Base payment equals monthly depreciation fee plus monthly rent charge, then sales tax is applied per your state's lease tax rules.
What is residual value?
Residual value is the lessor's estimated worth of the vehicle at lease end. A higher residual lowers your depreciation fee and monthly payment.
Does this calculator compare leasing vs buying?
Yes. After computing the lease, the tool compares net ownership cost against financing the same vehicle with an auto loan over the same term.
What fees are not included in the lease estimate?
Acquisition, disposition, and security deposit fees are common but not modeled here. Actual bank programs may add upfront charges beyond this estimate.