Auto Lease Calculator (U.S. Version)

Accurately estimate your monthly car lease payments. This tool follows U.S. leasing standards and automatically converts APR to Money Factor (APR ÷ 2400).

Monthly Payment

$0.00

Due at Signing

$0.00

Total Cost

$0.00

Total Interest

$0.00

Comprehensive Guide to Auto Leasing

Leasing a car is fundamentally different from buying one. When you buy a car with a loan, you pay for the entire cost of the vehicle. When you lease, you only pay for the usage of the vehicle over a specific period (usually 24 to 48 months). This Auto Lease Calculator helps you estimate those costs accurately by accounting for depreciation, interest (money factor), and taxes.

How to Use This Calculator

To get the most accurate monthly payment estimate, follow these steps to fill out the input fields:

MSRP (Sticker Price): Enter the full Manufacturer's Suggested Retail Price. This is found on the window sticker of the car.
Negotiated Selling Price: This is the most important number. Never pay MSRP! Enter the final price you negotiated with the dealer.
Down Payment / Trade-In: Enter any cash you are putting down or equity from a trade-in vehicle. Tip: It is generally recommended to put as little money down as possible on a lease.
Residual Value (%): This is the percentage of the car's value remaining at the end of the lease. High residual values lead to lower monthly payments.
Money Factor / APR: Enter the interest rate. You can enter the APR (e.g., 5.0%) and our tool will automatically convert it to the Money Factor (e.g., 0.00208).

The Auto Lease Formula Explained

Understanding the math behind your lease can help you negotiate a better deal. A lease payment is made up of three parts:

1. Depreciation Fee

This pays for the loss in value of the vehicle during your lease.

(Net Cap Cost - Residual Value) ÷ Lease Term

2. Finance Charge (Rent Charge)

This is the interest you pay to the leasing company for using their money.

(Net Cap Cost + Residual Value) × Money Factor

3. Sales Tax

Taxes vary by state. Most states tax the monthly payment, while others tax the full vehicle price upfront.

(Depreciation + Finance Charge) × Tax Rate

Key Terms You Should Know

Capitalized Cost (Cap Cost): The total price of the vehicle. This includes the negotiated price plus any fees (like acquisition fees) that you choose to roll into the loan.
Money Factor: The interest rate presented as a decimal. To convert an APR to a Money Factor, divide the APR by 2400. For example, 6% APR = 0.0025 Money Factor.
Acquisition Fee: A fee charged by the leasing bank (not the dealer) to set up the lease. This is typically between $595 and $1,095.
Disposition Fee: A fee charged at the end of the lease to cover the cost of cleaning and selling the car. You can sometimes get this waived if you lease another car from the same brand.

Frequently Asked Questions (FAQ)

Should I put a down payment on a lease?

Financial experts generally recommend putting zero down on a lease. If the car is totaled or stolen in the first few months, your down payment is typically lost. It is safer to pay a higher monthly payment than to risk losing a large upfront cash sum.

What is a "good" lease deal?

A common rule of thumb is the "1% Rule." If your monthly payment (with $0 down) is less than 1% of the MSRP, it is considered a great deal. If it is around 1.25%, it is average. If it is over 1.5%, it may be expensive.

How do I convert Money Factor to APR?

Simply multiply the Money Factor by 2400.
Example: 0.0025 × 2400 = 6% APR.

Disclaimer:

This Auto Lease Calculator is for educational and estimation purposes only. It uses standard industry formulas, but final lease terms are determined by the specific dealer and financial institution. Taxes and fees vary by state and county. Always review your official lease agreement before signing.