Car Lease Calculator
Your lease payment line by line, what is due at signing, and whether buying costs less.
Lease or buy, over 36 months
The payment, step by step
The progression of Regulation M (Consumer Leasing), 12 CFR 1013.4(f) — payment calculation.
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Car Lease Calculator
See exactly how a car lease payment is built. From the negotiated price, the residual value (the car’s value at the end, usually a % of MSRP) and the money factor — or the APR it stands for — the calculator works through the same steps US lessors must disclose under Regulation M: capitalized cost, cap-cost reduction, depreciation, rent charge, base payment and sales tax. It adds the acquisition fee (rolled in or paid), fees and taxes due at signing, and the excess-mileage charge if you drive more than the allowance.
Then compare it with buying the same car with a loan over the same months: what you pay, what you still owe at the end and what the car is worth, so the two totals are like for like. Pick the way your state taxes leases; amounts work in dollars, rupees, euros or pounds.
How to use it
- Enter the MSRP, the negotiated price and the residual (as a % of MSRP or an amount) and the lease term in months.
- Enter the money factor — or switch to APR if that is what you were quoted.
- Add the down payment, any trade-in equity and rebates, the acquisition fee (tick if it is rolled into the lease) and the fees due at signing.
- Enter your sales tax rate and choose how your state taxes leases.
- Enter the yearly mileage allowance, the miles you expect to drive and the charge per extra mile, and the disposition fee at the end.
- Open Compare with buying for a loan’s rate and term, then read the monthly payment, what is due at signing, the total cost and the comparison.
Examples
Depreciation $288.75 + rent charge $63.74 = $352.49 base + $24.67 tax = $377.17 a month · $2,777.17 due at signing with $400 of fees
Money factor 0.00125 × 2,400 = 3% APR.
6,000 extra miles over 36 months = $1,500 at turn-in
Lease $17,873 in all over 36 months · buying $638.64 a month, net $19,028 after selling the car for its $20,300 residual and paying off the $14,337 still owed · leasing $1,154 less
Common uses
- Check a dealer’s lease quote line by line.
- Turn a quoted money factor into an APR, or the other way round.
- See how a down payment, a higher residual or a lower price changes the payment.
- Decide whether to lease or buy for the time you will keep the car.
How the payment is calculated
The steps follow Regulation M, 12 CFR 1013.4(f) — the payment calculation a lessor must disclose for a vehicle lease:
- Gross capitalized cost = the agreed price + anything rolled in (acquisition fee, and tax if your state adds it up front).
- − Capitalized cost reduction (cash down, trade-in equity, rebates) = adjusted capitalized cost.
- − Residual value = depreciation, paid off over the term.
- Rent charge each month = (adjusted capitalized cost + residual) × money factor.
- Base payment = depreciation ÷ months + rent charge; then sales tax.
The first payment is due at signing: lease payments are made in advance.
Money factor and APR
The rent charge works on the average of the two balances — (cap cost + residual) ÷ 2 — at a monthly rate of APR ÷ 1,200, which is the same as (cap cost + residual) × APR ÷ 2,400. So money factor = APR ÷ 2,400: 0.00125 is 3%, 0.0025 is 6%. The calculator also shows the rate the payments themselves imply (paid in advance, with the car returned at its residual), which is close but not identical.
Sales tax on a lease
States tax leases differently: on each monthly payment, on the payments and also the down payment and rebates, or up front on the price (paid at signing or rolled into the lease). Choose the method your dealer or state uses; ask if you are not sure. Tax on the price is also what you would pay to buy, so the comparison with buying charges it on the purchase.
Comparing with buying
Both sides cover the same months. Leasing costs everything you pay: payments, cash down, trade-in equity, fees and taxes at signing, the disposition fee and any mileage charge (a refundable deposit is left out). Buying costs the down payment, trade-in, any tax and fees not financed and the loan payments made in those months — less what you would have if you sold the car then: its value minus the loan still owed. The car’s value at the end defaults to the residual; change it if you expect better or worse.
Limitations
- Uses the money-factor method lessors quote; some lessors calculate rent charges differently, and their disclosure is the authority.
- State and local tax rules vary more than the four methods offered (credits for trade-ins, caps, county taxes).
- Insurance, maintenance, registration renewals, wear-and-tear charges and early termination are not included.
- Buying assumes you sell the car at the end of the lease term for the value you enter; keeping it longer changes the comparison.
Privacy
Everything is calculated in your browser. The figures you enter are never uploaded or stored.
Frequently asked questions
How is a car lease payment calculated?
Depreciation + rent charge + tax. Depreciation = (adjusted capitalized cost − residual) ÷ months; rent charge = (adjusted capitalized cost + residual) × money factor. For $30,695 and a $20,300 residual over 36 months at 0.00125: $288.75 + $63.74 = $352.49, plus 7% tax = $377.17.
How do I convert a money factor to an APR?
Multiply by 2,400: a money factor of 0.00125 is 3% APR, 0.002 is 4.8%. To go back, divide the APR by 2,400.
What is the residual value?
The lessor’s estimate of the car’s value at the end of the lease, usually set as a % of MSRP. It is the amount you do not pay off: the higher it is, the lower the depreciation and the payment.
How much is due at signing?
Usually the first monthly payment, the down payment, fees not rolled into the lease (acquisition, documentation, registration), any tax charged up front and a refundable security deposit if there is one. The calculator lists each one.
How are excess mileage charges calculated?
(Miles driven − allowed miles over the lease) × the charge per mile. 14,000 a year on a 12,000-a-year, 36-month lease is 6,000 extra miles: at $0.25 a mile, $1,500.
Is it cheaper to lease or buy a car?
Over a lease term, it depends on the money factor against the loan rate, the residual against what the car will really be worth, and the fees and mileage. The comparison here puts both over the same months, counting the car’s value when you buy. Keeping a bought car after the loan is paid off changes the comparison, and the calculator does not model it.