Car lease calculator
Monthly lease payment from MSRP, residual, money factor and sales tax, split into depreciation and finance charge.
- ๐บ๐ธ US federal & state rules
- See sources
Monthly lease payment
$567.80
36 months, $530.65 before tax
- Depreciation part
- $380.42
- Finance part
- $150.24
- Money factor (APR)
- 0.0025 (6%)
- Total lease cost
- $22,441
This is an example. Enter your numbers above and press the button to see your own result.
Other residual values
| 45% residual | $708.45 a month |
|---|---|
| 50% residual | $654.35 a month |
| 55% residual | $600.26 a month |
| 60% residual | $546.16 a month |
| 65% residual | $492.07 a month |
- Total lease cost is your down payment plus all monthly payments. It leaves out the disposition fee, registration and any charges for extra miles or wear when you return the car.
- Tax here is on the monthly payment, which is how most states tax leases. Some states tax the down payment too, or the full price up front.
- Residual and money factor come from the leasing company and change monthly. Ask the dealer for both.
Show the math
| Negotiated price | $38,000.00 |
|---|---|
| Fees in the lease (acquisition fee etc.) | +$895.00 |
| Cap cost reduction (down + trade-in) | -$2,000.00 |
| Adjusted cap cost | $36,895.00 |
| Residual (58% of $40,000 MSRP) | $23,200.00 |
| Depreciation ($36,895 minus $23,200) รท 36 | $380.42 |
| Finance charge ($36,895 + $23,200) ร 0.0025 | $150.24 |
| Tax (7% of $530.65) | $37.15 |
| Monthly payment | $567.80 |
What to do next
How it works
The adjusted capitalized cost is the price you negotiate plus any fees rolled in, minus your down payment and trade-in. The residual value is the MSRP times the residual percentage.
Each month you pay for the depreciation, (adjusted cap cost minus residual) รท months, plus a finance charge of (adjusted cap cost + residual) ร money factor. Sales tax goes on top of that sum in states that tax lease payments.
Things to keep in mind
Lease tax rules vary. Most states tax each monthly payment, but a few tax the whole price or the total of payments at signing. Check your state's rule before you sign.
Mileage limits matter too. Going over the allowance usually costs a set amount per mile at turn-in, so pick a plan that fits how much you drive.
Sources
- FTC, financing or leasing a car (depreciation, rent charge and fees)Checked 2026-10-19
Frequently asked questions
How is a lease payment calculated?
It has two parts. Depreciation is (adjusted cap cost minus residual) รท months, and the finance charge is (adjusted cap cost + residual) ร money factor. Sales tax is then added in most states.
What is a good residual value?
Higher is better for the lessee because you pay for less depreciation. For a 36 month lease, residuals often fall between 50% and 60% of MSRP, depending on the model.
Should I put money down on a lease?
A big down payment lowers the monthly payment but does not save much interest, and if the car is totaled early that money is usually lost. Many people keep the down payment small for that reason.
Why is the residual based on MSRP and not my price?
Leasing companies set the residual as a percent of MSRP. Negotiating a lower price cuts the depreciation part of the payment without changing the residual.