Auto Lease Calculator
Adjust the inputs below. Results update as you type.
How it works
Monthly lease payment = (depreciation fee) + (finance fee) + taxes. Depreciation fee = (cap cost − residual) / months. Finance fee = (cap cost + residual) × money factor. Money factor × 2400 ≈ APR. A higher residual or lower money factor reduces payments. Gap insurance covers the difference between ACV and remaining payments if the car is totaled.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
A lease payment combines depreciation and finance charge: payment ≈ (cap cost − residual)/term + (cap cost + residual) × money factor. The money factor is roughly APR ÷ 2400.
Worked example
A $35,000 car with a $21,000 residual over 36 months at a 0.0015 money factor pays about ($14,000/36) + ($56,000 × 0.0015) ≈ $389 + $84 = $473/month before tax.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
What is residual value?+
The car's predicted worth at lease end. A higher residual means less depreciation to pay for, which lowers your monthly payment.
What is the money factor?+
The lease's interest charge in a small decimal form. Multiply by 2400 to approximate the equivalent APR for comparison.
Lease or buy?+
Leasing has lower payments and lets you change cars often, but you build no equity. Buying costs more monthly but you own the car afterward.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.