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Car lease calculator.

A lease payment is depreciation (cap cost minus residual, spread over the term) plus a rent charge (cap cost plus residual, times the money factor), plus tax. Multiply the money factor by 2,400 to see the APR it equals. Enter the quote below.

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Example numbers are filled in. Replace them with yours; results update as you type.

Residual is based on MSRP.

Negotiate this like a purchase price.

Acquisition fee, doc fee if capitalized.

Cash down, rebates, trade equity.

A small decimal, e.g. 0.00200. Not an APR.

Monthly payment$576.43
Adjusted cap cost
$38,995.00
Residual value
$24,000.00
Depreciation / month
$416.53
Rent charge / month
$125.99
Tax / month
$33.91
APR equivalent (money factor × 2400)
4.80%
Total lease cost (payments + cap reductions)
$20,751.31

Expensive by the 1% rule of thumb Effective monthly $576.43 is 1.44% of MSRP. About 1% of MSRP per month with nothing down is a strong lease.

Estimates for planning and comparison only, not financial, legal or tax advice. Rates, taxes and fees vary by lender, state and credit. Check the final numbers on the signed contract. Nothing you type is sent or saved.

How this calculator works

  1. Adjusted cap cost = selling price + fees rolled in − cap cost reductions. Residual = MSRP × residual %.
  2. Depreciation per month = (adjusted cap cost − residual) ÷ term. Rent charge per month = (adjusted cap cost + residual) × money factor.
  3. Tax is applied to each monthly payment. APR equivalent = money factor × 2,400.

Assumptions and limits

  • Uses the common US method of taxing each monthly payment. Some states tax the whole lease up front or tax cap cost reductions; check your state’s rules.
  • The 1% rule is a rough rule of thumb. It ignores term, miles per year and the vehicle’s price class.
  • Leaves out the disposition fee, excess-mileage charges and wear-and-tear charges at lease end.

Lease checker: questions

What is a money factor on a lease?

The lease version of an interest rate, written as a small decimal such as 0.00200. Multiply it by 2,400 to compare it to an APR. Ask the dealer for the money factor and residual in writing.

Is the selling price negotiable on a lease?

Yes. The gross cap cost is negotiated like a purchase price. The residual is set by the leasing company and is usually not negotiable.

What is the 1% rule for leases?

A rough check: a payment near 1% of MSRP per month with nothing down is generally a strong lease. It is a heuristic, not a verdict.

Read next

Lease vs buy

When a lease makes sense and when buying costs less.

Money factor explained

Money factor vs APR, and how to spot a marked-up one.

How to negotiate a lease

Which lease numbers move, and how.

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