Car Lease Calculator
Estimate a vehicle lease payment from negotiated price, residual value and money factor, with separate depreciation, rent charge, trade equity and user-entered tax treatment. Total economic cost includes positive trade equity surrendered, which cash payments alone can hide.
Your result
How the calculation works
Adjusted capitalized cost = negotiated price + financed fees − cash down − (trade value − trade loan payoff). Monthly depreciation = (adjusted cost − residual) / term. Monthly rent charge = (adjusted cost + residual) × money factor. Approximate money factor = APR / 2,400. Tax follows the selected simplified treatment; effective monthly cost divides total economic cost by lease months.
Worked example
A $28,000 negotiated price, $600 capitalized fees, $1,000 down, $15,000 residual, 36 months and 0.0025 factor yield $27,600 adjusted cost. Depreciation is $350 monthly and rent charge $106.50. With 10% monthly tax, payment is $502.15; total cash paid is $19,077.40 including the down payment.
Assumptions and limitations
Residual is an amount, not a percentage, and must not exceed MSRP or adjusted cost. Trade loan payoff exceeding value increases financed cost. The APR conversion is a conventional approximation, not a regulated effective APR calculation. Tax on monthly payments, all payments upfront or vehicle price upfront are simplified options; local rules may differ.
Confirm the actual capitalized cost, money factor, residual, tax base and fees with the lessor. This model excludes mileage penalties, damage charges, disposition fees and optional residual buyout unless you separately budget them. It does not determine lease eligibility, ownership rights or product suitability. Compare economic cost when a trade-in is involved, not cash paid alone.
Sources and editorial responsibility
Maintained by Renvoro Pty Ltd. These mathematical estimates do not provide financial, tax, legal or investment advice.
Method reviewed 2026-10-08. Calculation standards · Report an issue