Free auto lease calculator
Enter the cap cost, residual, money factor, and term — this auto lease calculator breaks down depreciation, finance fee, and tax to show your monthly lease payment, updated live, as you type.
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Does not include acquisition fee, disposition fee, or excess mileage charges. Always negotiate cap cost and ask for the money factor upfront.
Results are estimates. Consult a professional.
How the auto lease calculator works
A car lease payment has three components: depreciation, a finance fee, and sales tax. Unlike a loan, you are only financing the portion of the vehicle's value that you consume during the lease term — not the full purchase price.
The money factor is a lease-specific interest rate. Multiply it by 2,400 to convert it to a conventional APR equivalent. A money factor of 0.0020 equals roughly 4.8% APR. Manufacturers set both the money factor and the residual value percentage each month — and both are negotiable only in limited ways (money factor can sometimes be marked up by dealers; residual is almost always fixed).
Edmunds lease guide; CarEdge 2024 lease analysisWorked example: leasing a $38,000 SUV
Negotiated cap cost: $36,500 (after $1,500 dealer discount). Cap cost reduction: $2,000 (down payment). Adjusted cap cost: $34,500. Residual value: 55% × $38,000 = $20,900. Term: 36 months. Money factor: 0.0022. Tax rate: 6%.
Monthly payments: $35,000 car at various residuals and money factors (36-month lease)
The table below assumes a $35,000 MSRP with no cap cost reduction, no acquisition fee, and 0% tax — so you can isolate the effect of residual value and money factor. Add your local tax rate and down payment in the calculator above for a personalized number.
| Residual % | MF 0.0020 (~4.8% APR) | MF 0.0025 (~6.0% APR) | MF 0.0030 (~7.2% APR) |
|---|---|---|---|
| 50% ($17,500) | $512 | $546 | $581 |
| 55% ($19,250) | $468 | $503 | $537 |
| 60% ($21,000) | $424 | $458 | $493 |
Source: Edmunds lease formula; CarEdge 2024. Figures rounded to nearest dollar.
Every 5-percentage-point increase in residual value cuts approximately $44/month from the base payment on a $35,000 vehicle. High-residual months (often late winter and early spring for popular models) are generally the best times to lease.
Tips for getting the best lease deal
Leasing rewards research. The dealer controls the cap cost (negotiated price) and can mark up the money factor — but the residual is set by the manufacturer and cannot be negotiated. Focus your haggling on the right variables.
- Negotiate the cap cost first — treat it exactly like a cash purchase negotiation. Never start with the monthly payment; that lets the dealer hide profit in the money factor or fees.
- Look up the buy rate money factor — sites like Edmunds Forums publish manufacturer-set money factors monthly. If the dealer quotes higher, ask them to match the buy rate.
- Minimize the down payment — a lease down payment lowers your monthly bill but is lost if the car is totaled. Instead, use the cash to pay off higher-interest debt or keep it liquid.
- Check for acquisition and disposition fees — acquisition fees ($595–$895) are due at signing; disposition fees ($300–$500) are due at lease-end if you don't buy or re-lease. Factor both into your true cost.
- Understand mileage overages before signing — excess mileage charges run $0.15–$0.30 per mile. If you drive 18,000 miles/year and the lease allows 12,000, you owe $900–$1,800 per year at lease-end.
Accuracy and limitations
This calculator uses the standard automotive lease formula as published by Edmunds and validated by CarEdge. Results are accurate to within a few dollars of a dealer's worksheet when you enter the correct cap cost, residual, money factor, and tax rate. Small differences can arise from how a dealer rounds intermediate figures or structures the acquisition fee.
The calculator does not include gap insurance (often bundled into a lease), excess wear-and-tear charges, or state-specific tax treatments that tax the full vehicle value rather than only the monthly payment (as in Texas and a few other states). Always request the dealer's lease worksheet — a federal regulation called the Consumer Leasing Act requires full disclosure of all lease terms before you sign.
Auto lease terms defined
About this auto lease calculator
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