Car lease calculator

Car lease calculator: what it is for

Enter the MSRP and the negotiated selling price, your down payment and trade-in, fees, the residual percentage, the money factor or APR, the term and your state's sales tax rate. The calculator shows the monthly payment broken into depreciation, rent charge and tax, the due-at-signing estimate and the total cost of the lease.

It also estimates the payment and total cost of buying the same car with a loan at the same APR, so you can compare paying for the car's use with owning it.

How to use

1. Enter the price, residual and money factor.
2. Add the down payment, fees and tax.
3. Read the payment and compare with buying.

When to use it

• Checking a dealer's lease quote.
• Comparing lease offers.
• Deciding between lease and buy.

Frequently asked questions

How is a car lease payment calculated?

It has two parts. The depreciation fee is the adjusted capitalized cost minus the residual value, divided by the number of months. The finance fee (rent charge) is the adjusted cap cost plus the residual, times the money factor. Most states then add sales tax to the monthly payment.

What is the money factor?

It is the lease's interest rate in another format. Multiply the money factor by 2,400 to get the approximate APR: a money factor of 0.00250 is about 6% APR. Ask the dealer for it, since a marked-up money factor raises the payment.

What is the residual value?

It is what the leasing company expects the car to be worth at the end of the lease, set as a percentage of the MSRP (often 50% to 65% for a 36-month lease). A higher residual means a lower payment, because you pay for less depreciation.

Is it really free?

Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 tools are free and run right in your browser.

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