What is a car lease, and how is it different from buying?

A car lease lets you drive a new vehicle for a set period with monthly payments, but you don’t own the car. When you buy, you pay the full amount, and the car is yours at the end.

What does “residual value” mean in a lease?

Residual value is the estimated worth of the car at the end of the lease term. It’s set at the beginning of your lease and affects your monthly payment.

What is the “money factor” in a car lease?

The money factor is the interest rate on your lease, usually shown as a decimal. Multiply it by 2400 to get an approximate annual percentage rate (APR).

What information do I need to use this calculator?

You’ll need the vehicle price, negotiated price, down payment, money factor, residual value percentage, lease term, tax rate, registration fees, and any trade-in value.

Can I export or share my results?

Yes, you can instantly copy your results or export them as a PDF or Excel file for recordkeeping or sharing with a dealer.

How accurate are the monthly payment and total cost estimates?

The calculator provides highly accurate estimates based on your inputs, but actual offers may vary depending on dealer incentives, credit approval, and local taxes or fees. Always verify with your dealer before finalizing a lease.

Car Lease Calculator

Easily calculate your monthly car lease payments.

Calculator Inputs

Lease terms and costs

MSRP ($)

Negotiated Price ($)

Down Payment ($)

Trade-in ($)

Money Factor (e.g. 0.0025)

Residual (%)

Term (months, 1–60)

Sales Tax (%, 0–25)

Fees ($)

Rebates ($)

Results

Monthly payment and total cost

Total Monthly Payment

$592

Residual Value

$22,000

Total Cost

$23,973

Cumulative Payments Over Time

Total payments to date by year (3 years)

Depreciation vs Finance by Year

All 3 years

Yearly Breakdown

First 15 years. Download full schedule for all 3 years.

Year	Payments	Depreciation	Finance	Tax
1	$7,108	$4,883	$1,760	$465
2	$7,108	$4,883	$1,760	$465
3	$7,108	$4,883	$1,760	$465

Lease Schedule

First 15 months. Download full schedule for all 36 months.

Month	Payment	Depreciation	Finance	Tax	Balance
1	$592	$407	$147	$39	$0
2	$592	$407	$147	$39	$0
3	$592	$407	$147	$39	$0
4	$592	$407	$147	$39	$0
5	$592	$407	$147	$39	$0
6	$592	$407	$147	$39	$0
7	$592	$407	$147	$39	$0
8	$592	$407	$147	$39	$0
9	$592	$407	$147	$39	$0
10	$592	$407	$147	$39	$0
11	$592	$407	$147	$39	$0
12	$592	$407	$147	$39	$0
13	$592	$407	$147	$39	$0
14	$592	$407	$147	$39	$0
15	$592	$407	$147	$39	$0

For educational and estimation purposes only; not financial or legal advice. Lease terms, money factor, and taxes vary by state and dealer (U.S.). Consult the dealer for actual terms.

Here’s a step-by-step guide to using this calculator and understanding each field:Inputs: Lease Terms and Costs

Vehicle Price: The manufacturer’s suggested retail price (MSRP) of the car.
Negotiated Price: The price you agree to pay for the car, often less than MSRP.
Down Payment: Any upfront payment you make to reduce your monthly payments.
Rebates/Incentives: Enter any dealer or manufacturer discounts.
Money Factor: The interest rate on the lease, typically provided by the dealer. (Tip: Multiply the money factor by 2400 to estimate the APR.)
Residual Value (%): The estimated percentage of the car’s value at lease end. (Usually 50–60% for a 36-month lease.)
Lease Term (months): The length of your lease, commonly 24, 36, or 48 months.
Sales Tax Rate (%): Your local sales tax rate, if applicable.
Registration & Fees: Any additional costs required to complete the lease.
Trade-In Value: If you’re trading in a car, enter its value here.

Results: What You’ll See

Total Monthly Payment: The all-in monthly payment, factoring in depreciation, finance charges, taxes, and fees.
Residual Value: The dollar amount the car will be worth at lease end, based on your inputs.
Total Cost: The total amount you will pay over the full lease term.

Visual Breakdown & Schedules

Cumulative Payments Over Time: See how your payments accumulate year by year for the duration of your lease.
Depreciation vs Finance by Year: Visualize how much of your payments go toward depreciation versus finance charges annually.
Yearly Breakdown: Detailed table showing annual payments, depreciation, finance charges, and taxes.
Lease Schedule (Preview): Month-by-month breakdown for the first year, including exact payment, depreciation, finance, tax, and balance.

Export and Sharing Options

Copy: Instantly copy your results for easy sharing.
Export PDF / Export Excel: Download your full lease breakdown in PDF or Excel format for your records or discussions with a dealer.

Understanding Car Leasing

Leasing a car is an alternative to buying, allowing you to drive a new vehicle for a set period—usually two to three years—while making predictable monthly payments.

Instead of paying for the full price of the car, you only pay for the vehicle’s depreciation during the lease term, plus applicable interest and fees. At the end of the lease, you typically return the car or have the option to buy it for its residual value.

Many people choose leasing for lower monthly payments, the ability to drive newer cars more often, and reduced maintenance worries. However, understanding the true cost of leasing can be confusing due to factors such as the money factor, residual value, and taxes.

This calculator is designed to help you break down these elements so you can make an informed decision about your next car lease.

How This Calculator Helps

This Car Lease Calculator is built to give you a transparent view of your car lease expenses using real, practical inputs and detailed outputs. By entering your specific lease terms—such as vehicle price, negotiated price, down payment, money factor, and lease duration—you can instantly see:

Total Monthly Payment: The exact amount you’ll pay each month, including depreciation, finance charges, and taxes.
Residual Value: The estimated value of the car at the end of the lease term.
Total Cost: The combined amount you’ll pay over the life of the lease.

Visual charts and year-by-year breakdowns show how your payments add up over time, helping you plan and budget confidently.