How the Auto Lease Calculator works
Estimate a monthly vehicle lease payment. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this auto lease calculator to estimate a monthly lease payment before tax. It is helpful for comparing lease offers, down payments, residual values and money factors.
Formula
Lease payment = depreciation charge + finance charge
- Depreciation charge is based on vehicle price minus residual value over the lease term.
- Finance charge uses the money factor on the adjusted capitalized cost and residual value.
- Down payment or trade-in reduces the amount used in the estimate.
Worked example
For a $42,000 vehicle, $3,000 down, $24,000 residual value, 0.0025 money factor and 48-month term, the calculator estimates a pre-tax monthly lease payment.
Common mistakes
- Comparing leases without checking mileage limits and fees.
- Putting too much money down on a lease without understanding the risk.
- Confusing money factor with APR.
FAQs
How do I convert money factor to APR?
A rough conversion is money factor multiplied by 2400.
Does this include tax?
No. It estimates payment before tax and other local fees.
Why does residual value matter?
A higher residual value can lower the depreciation portion of the lease payment.