easyMcalc

Monthly payments. Every figure comes from the boxes below.

Auto lease calculator

An estimate for comparing offers. It is not a quote, and no dealer has seen these figures. How a lease payment is worked out

Monthly payment $544.43/ a month Full schedule

The car
The price the lease is actually written against, after any discount. This is the number to negotiate.
What the car is agreed to be worth at the end. The leasing company sets it from a guide; it is not negotiable, and it decides most of the payment.
The lease terms
The decimal on the lease sheet, such as 0.00250. Multiply by 2400 for the equivalent annual rate.
Thirty-six months is the usual arrangement.
Most places tax a lease on the monthly payment rather than on the car. Where yours taxes the whole price instead, this box does not describe it.
Paid at signing
It lowers the payment and it is not a deposit: the money is gone if the car is written off early.
Charged at signing by the leasing company. It is not in the monthly payment.

What the lease costs

Monthly payment $544.43 / a month

  • Depreciation $361.11
  • Rent charge $152.50
Payment before tax
$513.61
Tax on the payment
$30.82
Due at signing
$4,239.43
Net capitalized cost
$37,000
Equivalent annual rate
6%
Total cost of the lease
$23,294.48

The money factor works out at 6% a year by the trade's own multiplier of 2400. That multiplier is a convention rather than a derivation, so treat the figure as a way to compare offers, not as a rate anybody is quoting you.

The total is everything at signing plus every payment, counting the first one once. It does not include the mileage you will be charged for, wear beyond what is allowed, or the disposition fee at the end.

What the monthly payment is made of

A bar splitting $544.43 into 3 parts, each labelled with its share.

  • Depreciation$361.1166%
  • Rent charge$152.5028%
  • Tax$30.826%
One payment, split into the value the car loses, the charge for the money and the tax on both.

A lease payment is not a loan payment

Buying a car on finance means borrowing its whole price and repaying it. Leasing means paying for the part of the car you actually use up, plus a charge on the money the leasing company has tied up in the rest. There is no balance, nothing is being repaid, and at the end you hand the car back.

That is why the arithmetic is different and why a loan calculator gives the wrong answer for a lease. The payment is depreciation, the value lost over the term, plus a rent charge on the money involved. Those two halves move in opposite directions as the residual changes, which is the part that surprises people.

The residual decides almost everything

The residual is what the car is agreed to be worth when the lease ends. The leasing company sets it from a published guide and it is not negotiable, and it does more to the payment than any other number on the sheet.

A car that holds its value well has a high residual, loses little over the term, and is cheap to lease even when it is expensive to buy. A car that depreciates hard is the reverse: the sticker price may be modest and the lease painful. This is the single reason two cars at the same price can lease for very different money, and it has nothing to do with the dealer.

The money factor, and the number it is hiding

Leases quote a money factor rather than an interest rate. It is a small decimal, something like 0.00250, and it means almost nothing to most people at a glance, which is not entirely an accident.

Multiplying it by 2400 gives the equivalent annual rate, and doing that once turns an opaque figure into one that can be compared against a car loan. This page does it for you. Treat it as a comparison rather than a quoted rate: the multiplier is a trade convention, not a derivation, but it is the convention everyone in the business uses.

Cash at signing is not a deposit

Money put down on a lease lowers the payment and does not build anything. It is not equity and there is nothing to get back: if the car is written off or stolen early, that money is generally gone along with it, because the insurance settlement goes to the leasing company for the car's value rather than to you for what you paid in.

This is the standard argument for putting as little down on a lease as the deal allows and accepting the higher payment. It is a real argument, and it is the opposite of the advice that applies to buying.

What this page does not model

Mileage allowances and the per-mile charge for exceeding them, wear beyond what the agreement permits, the disposition fee at the end, gap cover, early termination, and the buyout price are all outside it. So is the question of whether leasing beats buying, which depends on how long you keep cars and what you do with the money in between.

Common questions

Is an auto lease calculator the same as a car lease calculator?

Yes. Auto and car are the same word in two dialects, and both names describe this page.

Why does a higher residual lower the payment but raise the rent charge?

Because the two halves are measured against different things. Depreciation is the gap between the start and end values, so a higher residual narrows it. The rent charge is on the sum of those two values, so a higher residual widens that. The first effect is much larger, so the payment falls overall.

What is a good money factor?

Compare it against car loan rates by multiplying by 2400. Anything materially above what you could borrow at is a finance cost dressed up as a lease term, and it is the part of the deal most often marked up quietly.

Should I put money down on a lease?

Usually as little as the deal allows. Cash at signing reduces the payment but builds nothing you can recover, and it is generally lost if the car is written off early. Buying is the opposite case, where a deposit reduces a real debt.

Is anything I type stored?

No. The calculation happens on the server as part of rendering the page, nothing is written down, and the access log for this site drops the query string precisely so that the numbers you enter are never recorded.

Sources

A lease is arithmetic on figures the leasing company sets, not a rate anybody publishes. What follows is the formula and the conventions this page uses.

How a lease payment is worked out

The payment has two halves. Depreciation is the net capitalized cost less the residual, spread evenly across the term. The rent charge is the money factor applied to the sum of the net capitalized cost and the residual, which is how the trade writes it, so a figure from a dealer sheet can be checked here without converting anything first.

A money factor times 2400 is the equivalent annual rate. It is an industry convention rather than an exact conversion, and the page prints it as a comparison figure rather than as a quoted rate.

Not modelled: mileage charges, wear and tear, the disposition fee, gap cover, early termination, the buyout at the end, and whether leasing beats buying. The last of those is a different question and not one this page answers.