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Auto Lease Calculator

Calculate monthly auto lease payments from cap cost, residual value, and money factor. Compare lease terms and total cost.

Vehicle Information

Lease Terms

%

Equivalent to 3.00% APR

%

🚗 Vehicle Types

Lease Payment Results

Monthly Payment

$450.65

36 months at 3% APR

Total Cash Due

$2,500

At signing

Total Lease Cost

$18,723.46

All payments + cash

Residual Value

$21,000

60% of MSRP

Cost per Mile

$0.52

36,000 total miles

Payment Breakdown

Depreciation:$347.22
Interest (Money Factor):$68.13
Base Payment:$415.35
Sales Tax:$35.3
Total Monthly:$450.65

Mileage Details

Annual Allowance: 12,000 miles
Total Allowed: 36,000 miles
Excess Rate: $0.25/mile (typical)
Going over your mileage limit can result in significant charges at lease end.

📋 Calculation Steps

1Residual Value = $35,000 × 60% = $21000.00
2Adjusted Cap Cost = $35,000 - $2,000 - $0 + $1,500 - $1,000 = $33500.00
3Monthly Depreciation = ($33500.00 - $21000.00) ÷ 36 = $347.22
4Monthly Interest = ($33500.00 + $21000.00) × 0.00125 = $68.13
5Base Payment = $347.22 + $68.13 = $415.35
6Monthly Tax = $415.35 × 8.5% = $35.30
7Total Monthly Payment = $415.35 + $35.30 = $450.65

How it works

A car lease splits your payment into depreciation (the value the car loses over the lease) and a finance charge set by the money factor. You pay for the miles and time you use, then return the car — which is why leasing costs less monthly than financing the whole car.

Lease payment

Payment ≈ (Cap cost − Residual) ÷ months  +  (Cap cost + Residual) · money factor
Cap cost
negotiated car price (minus any down payment)
Residual
predicted value at lease-end
money factor
lease rate; × 2400 ≈ APR

Worked example

  • Cap cost = $35,000, residual = $21,000
  • 36 months, money factor 0.00150 (≈3.6% APR)
  1. Depreciation = (35,000 − 21,000) ÷ 36 = $389
  2. Finance = (35,000 + 21,000) × 0.00150 = $84

Payment ≈ $473/month (before tax).

Good to know

  • Mileage caps matter: going over (often 15–25¢/mile) can turn a cheap lease expensive at turn-in.
  • A car that holds value (high residual) leases cheaply; a fast-depreciating one does not.
  • A big down payment lowers the payment but is largely lost if the car is totaled early.

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Frequently Asked Questions

How is a monthly lease payment calculated?

It is the sum of two parts: depreciation — (capitalized cost − residual value) ÷ months — plus a finance charge of (capitalized cost + residual value) × money factor. Tax is then added on top in most states.

What is the money factor?

The lease world's version of an interest rate. Multiply it by 2,400 to approximate the APR: a 0.00150 money factor is about 3.6%. It is negotiable and credit-dependent, so always ask for it explicitly when comparing offers.

What is residual value and why does it matter?

The leasing company's prediction of the car's value at lease end, set as a percentage of MSRP. A higher residual means less depreciation to pay for, so vehicles that hold value well lease cheaply — it is the main reason similar-priced cars can have very different payments.

What happens if I exceed the mileage allowance?

You pay a per-mile charge at turn-in, commonly 15-30 cents per mile. Driving 5,000 miles over at 25 cents costs $1,250. If you know you will drive more, buying extra miles up front is usually cheaper than paying the overage later.

Should I make a large down payment on a lease?

A big down payment (capitalized cost reduction) lowers the monthly payment, but if the car is totaled or stolen early, that money is generally gone — insurance pays the leasing company, not you. Many experts suggest keeping lease down payments small for that reason.