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Car Lease Calculator

Work out a monthly car lease payment from the cap cost, residual value, money factor (or APR) and sales tax, then compare the total cost of leasing with buying the same car over the same months.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

Car lease calculator

MSRP ($)Negotiated price / cap cost ($)Cap cost reduction (down) ($)Acquisition fee ($)Residual value (% of MSRP)

Rate entered asMoney factor or APRTerm (months)Sales tax on payment (%)

Monthly lease payment with tax

–

–Base payment before tax

–Depreciation part

–Rent charge (finance) part

–Residual value

–Rate conversion (× 2,400)

–Total lease cost

Lease vs. buy over the same months

Loan APR if buying (%)Loan term (months)Sales tax on purchase (%)Car value at lease end (% of MSRP)

–Lease: total cost

–Buying: loan payment

–Buying: payments + balance owed − car's value

–Verdict

How a car lease payment is calculated

A lease payment has two parts. The depreciation fee = (adjusted cap cost − residual value) ÷ months, and the rent charge = (adjusted cap cost + residual value) × money factor. The adjusted cap cost is the negotiated price plus fees (like the acquisition fee) minus any cap cost reduction. Most states charge sales tax on each monthly payment.

Example: MSRP $40,000, price $38,000, $2,000 down, $695 acquisition fee, 58% residual ($23,200), money factor 0.0025, 36 months: depreciation $374.86 + rent charge $149.74 = $524.60 base, $557.39 with 6.25% tax, and $22,066 over the lease including the down payment.

Money factor to APR (and back)

The money factor is the lease's interest rate written as a small decimal. Multiply by 2,400 for the approximate APR: 0.0025 × 2,400 = 6%. To turn an APR into a money factor, divide by 2,400 (pick "APR" in the calculator). Ask the dealer for the money factor in writing; it can be marked up above the lender's buy rate.

Lease vs. buy: which costs less?

Buying the same car for $38,000 with 6.25% tax, $2,000 down and a 60-month loan at 6.5% costs $750.85 a month. After 36 months you've paid $29,031, still owe $16,856, and own a car worth about $23,200 (58% of MSRP), a net cost of about $22,686 versus $22,066 for the lease. Buying usually wins if you keep the car for years after the loan ends; leasing can win if you want a new car every three years and drive under the mileage limit.

Car lease calculator: what to negotiate

The cap cost (price), exactly as you would when buying.
The money factor (ask for the buy rate).
Fees: acquisition, disposition at the end, and excess-mileage charges per mile.
Large cap cost reductions are risky: if the car is totaled early, the down payment is usually lost.

Common questions

How is a car lease payment calculated?

(Adjusted cap cost − residual) ÷ months + (adjusted cap cost + residual) × money factor, plus sales tax on the payment.

How do I convert a money factor to APR?

Multiply by 2,400: a 0.0025 money factor is about 6% APR.

What is a good residual value?

Higher is better for you as the lessee; 55% to 65% on a 36-month lease is common.

Is it better to lease or buy a car?

Buying usually costs less if you keep the car long after the loan; leasing suits drivers who want a new car every few years and drive within the mileage limit.

Sources

More loan and car calculators: Boat Loan Calculator · Car Loan Payoff Calculator · Debt Payoff Estimator

General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.