A car lease calculator that shows every step
A lease payment is not a loan payment: you pay for the car’s loss in value over the lease plus a finance charge set by the money factor. This car lease calculator works out the monthly payment from the agreed price, residual value, money factor or APR, term, down payment, trade-in and sales tax — and shows how much is due at signing and what the whole lease costs.
It handles a trade-in with negative equity, fees rolled into the lease or paid upfront, and the different ways places tax a lease. Tick “compare with buying” for a lease vs buy comparison over the same months. Download the figures as a CSV to open in Excel. Results are estimates, not financial advice.
How to use the Car Lease Calculator
- Enter the agreed price, the MSRP and the residual percentage from the leasing company, and the term in months.
- Enter the money factor, or switch to APR if the dealer quoted an interest rate.
- Add your down payment, rebates and any trade-in — the value and what you still owe on it.
- Enter fees and choose how sales tax is charged where you live.
- Read the monthly payment, due at signing and total cost; compare with buying, then download the CSV or copy the summary.
Car Lease Calculator features
Transparent formula
Gross and adjusted cap cost, residual, depreciation fee, rent charge and tax, line by line.
Money factor ↔ APR
Type either; switching converts the number so the lease stays the same.
Trade-in with negative equity
Equity lowers the cap cost; negative equity is rolled in and its monthly cost shown.
Tax by region
Tax on each payment, on the total of payments upfront, on the price upfront, or none — with your rate.
Lease vs buy
A loan on the same car, counting the car you keep at the end.
The car lease formula
Adjusted cap cost = agreed price + fees rolled in + negative trade-in equity − down payment − rebates − positive trade-in equity. Residual = MSRP × residual %. Depreciation fee = (adjusted cap cost − residual) ÷ months. Rent charge = (adjusted cap cost + residual) × money factor. The base payment is the two added together, and tax is added on top where payments are taxed.
Example: a $35,000 car (MSRP $38,000) with a $995 acquisition fee and $2,000 down has an adjusted cap cost of $33,995. A 58% residual is $22,040. Depreciation: $11,955 ÷ 36 = $332.08. Rent charge: $56,035 × 0.0025 = $140.09. Base payment $472.17; with 7% tax on each payment, $505.22 a month.
Money factor, residual and negative equity
- Money factor × 2,400 gives the approximate APR: 0.00250 ≈ 6%, 0.00125 ≈ 3%. Ask for the “buy rate” — dealers can mark it up.
- A higher residual means a lower payment, because you pay for less depreciation. The residual is also the price to buy the car at the end.
- Rolling negative equity into a lease makes every payment larger and is lost at lease end; paying it off separately is usually cheaper.
- Most places tax each monthly payment; some tax the total or the price upfront. Use the method and rate for where the car will be registered.
Lease or buy?
Leasing usually costs less each month and over a short term; buying usually costs less if you keep the car for years, because the later years have no payment. The comparison assumes the car is worth about the residual value when the lease ends and leaves out mileage charges, wear and tear, insurance and interest you could earn on cash. For a loan in detail use the car loan calculator; for running costs, the cost per km calculator.
Car Lease Calculator FAQ
How do I use the car lease calculator?
Enter the price, MSRP, residual %, term and money factor (or APR), then your down payment, trade-in, fees and tax. The monthly payment, due at signing and total cost update as you type.
How do I convert a money factor to APR?
Multiply by 2,400: a money factor of 0.0021 is about 5.04% APR. Divide an APR by 2,400 to get the money factor.
How does a trade-in with negative equity affect a lease?
The amount you owe above the car’s value is added to the cap cost, so you pay it back — with rent charge — in every monthly payment.
Can I use this as a car lease calculator in Excel?
Yes — “Download CSV (Excel)” saves every input and result, which you can open and adjust in Excel or Google Sheets.
What is a good residual percentage?
It depends on the model and term; 50% to 65% after three years is common. It is set by the leasing company, not negotiated.
Is leasing cheaper than buying?
Over the lease term often yes, over the life of a car usually no. Tick the lease vs buy comparison to see both for your numbers.