Car Lease Calculator
Calculate your estimated monthly lease payment including depreciation, rent charges, and taxes.
Estimated Monthly Payment
$0.00
Gross Cap Cost: $0.00
Residual Value: $0.00
Depreciation Fee: $0.00
Financing (Rent) Fee: $0.00
Monthly Sales Tax: $0.00
Total Cost of Lease: $0.00
How Your Car Lease Payment is Calculated
Leasing a vehicle is often more complex than traditional financing. Unlike a loan where you pay for the entire value of the car, a lease only charges you for the portion of the car's value you use during the lease term. Our calculator breaks down the three core components of a lease payment:
1. Depreciation Fee
This is the largest part of your payment. It covers the loss in the vehicle's value over the time you drive it. Formula: (Adjusted Capitalized Cost – Residual Value) / Lease Term.
2. Financing Fee (The Rent Charge)
This is essentially the interest you pay for the leasing company's capital. It uses a "Money Factor" instead of an APR. Formula: (Adjusted Capitalized Cost + Residual Value) × Money Factor.
3. Sales Tax
In most states, sales tax is applied to the sum of the depreciation and financing fees monthly. Some states require the tax upfront, but the monthly method is most common for calculation purposes.
Important Leasing Terms to Know
- MSRP: The Manufacturer's Suggested Retail Price.
- Gross Cap Cost: The negotiated price of the vehicle plus any added fees or insurance.
- Residual Value: The predicted value of the car at the end of the lease. High residual values usually result in lower monthly payments.
- Money Factor: To convert this to a familiar APR, multiply it by 2400. (e.g., 0.0015 × 2400 = 3.6% APR).
Example: Leasing a $35,000 SUV
Imagine you negotiate a $35,000 SUV down to $32,000. You put $2,000 down, leaving a Net Cap Cost of $30,000. If the 36-month residual value is 60% ($21,000) and the Money Factor is 0.00125:
- Depreciation: ($30,000 – $21,000) / 36 = $250.00
- Rent Charge: ($30,000 + $21,000) × 0.00125 = $63.75
- Base Payment: $313.75 + Sales Tax