How to use this calculator
Replace the example values with your own measurements or specifications. Keep the units shown beside each label. Results update as you type; reset restores the example.
Models an equal-monthly-payment lease with the first payment at signing and return of the vehicle at the end. It excludes a buyout, insurance, fuel, maintenance, excess-mileage or wear charges, early termination, recurring fees other than entered monthly tax, and the time value of money. A fully refundable deposit is not treated as a cost. Lessor rounding can change totals slightly.
The formula
A worked example
With a $35,000 agreed price, $1,000 rolled in, $2,000 cash down, and $1,000 rebate, adjusted capitalized cost is $33,000. A $22,000 residual over 36 months gives $305.56 monthly depreciation. A 0.002 money factor adds $110 rent. With 6% monthly tax, payment is about $440.49. Adding $500 upfront costs and a $400 return fee gives $18,757.60 total modeled cost, or $521.04 per month. Cash due at signing is $2,940.49 with no security deposit. These are illustrative terms, not an offer.
Common questions
What is a money factor?
It is the decimal used here to calculate the rent charge. Ask for the factor used in your quote; it is not a loan APR. This calculator does not convert APR into a lease rate.
Is the residual based on the negotiated price?
Use the residual dollar amount in the quote, or open “Have a residual percentage?” beside that field. Enter the quote’s MSRP and percentage, then press Apply residual value. For example, $40,000 × 55% gives $22,000. Do not apply the percentage to a discounted selling price unless the quote explicitly uses that basis. Shared results contain the applied dollar value; unapplied converter entries are not included.
Does this calculate my state’s lease taxes?
No. The percentage field models tax on each base monthly payment only. For taxes paid upfront or rolled into the lease, enter the quoted dollar amount in the corresponding field and set monthly tax to zero if none applies. Confirm local treatment with the lessor.
Why is effective monthly cost higher than the payment?
It spreads cash down, trade equity, upfront costs and the return fee over the full term. Rebates are not your contribution. The first monthly payment is already one of the term’s payments and is not added twice.
Where do acquisition fees and negative trade equity go?
Put amounts financed into the lease in the rolled-in field, or separately paid costs in the upfront field. The trade field accepts positive net equity only. Do not enter a fee again if it is already included in the agreed price or another input.
Will I own the vehicle after these payments?
This estimate assumes you return it. A purchase option, if offered, adds its own price, fees and taxes. Compare loan payments with the auto loan calculator, and ongoing running expenses with the ownership cost calculator.
Sources & calculation method
The Federal Reserve rent-charge explanation supplies the relationship (adjusted capitalized cost + residual) × money factor. Its worked example gives a monthly rent charge of $110.27 from $18,800, $12,350 and 0.00354; an automated check reproduces the unrounded $110.271.
The CFPB leasing overview explains depreciation, payment components and return obligations. The Federal Reserve upfront-cost guide distinguishes reductions, signing payments, fees and refundable deposits. This tool’s cash and cost totals apply those distinctions to your inputs; they are not a reproduction of every contract or jurisdiction’s tax rules.
References accessed September 9, 2026. These sources support the stated relationships and units; they have not reviewed or endorsed AutomotiveCalc.
Prepared with AI assistance. Formula examples and input validation have automated checks. This page has not received an independent automotive professional review. Read our review standards.