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Lease Calculator

Enter the vehicle's Manufacturer Suggested Retail Price. Used to calculate residual value.

The agreed price before incentives and fees. Lower is better for your lease payment.

Cash you plan to put down at signing. This reduces the capitalized cost.

Any trade-in value used as a cap cost reduction.

Manufacturer or dealer incentives applied to reduce your cap cost. These typically reduce what you pay at signing.

Leasing bank fee. Often between $495 and $1,095.

Enter any additional fees due at signing that are rolled into the lease or paid upfront.

Enter your local sales tax rate. The calculator applies it to the monthly payment (typical in many states).

Common terms are 24, 36, 39, or 48 months.

Provided by the lender. The higher the residual, the lower your monthly payment.

MF is the lease interest rate. To convert APR to MF, divide APR by 2400. Example: 3% APR ? 0.00125 MF.

Results are estimates for educational purposes and may vary by lender and state tax rules.

Use our Lease Calculator to quickly estimate your monthly payment, taxes, due-at-signing, and total lease cost before you visit the dealership. Understand how money factor, residual value, and cap cost reductions work together so you can negotiate with confidence.

How the Lease Calculator Works

Leasing a vehicle involves a handful of inputs that determine your payment. The most important are the negotiated selling price, the residual value, the money factor, your lease term, and any fees, incentives, or cash you put down. Our Lease Calculator combines these inputs to deliver a clear monthly estimate and a full cost breakdown.

Here’s the basic math behind the scenes: the calculator finds your adjusted capitalized cost (selling price plus bank/doc fees, minus any cash down, trade-in credit, and rebates). It then calculates depreciation by subtracting the residual value from the adjusted cap cost and spreading that difference evenly across your lease term. The finance charge comes from multiplying the sum of the adjusted cap cost and residual by the money factor. Add depreciation and finance together for the base payment, then apply sales tax (in states where tax is assessed monthly) to get your estimated monthly payment with tax.

Key Terms You Should Know

  • MSRP: The manufacturer’s suggested retail price. Residual percentage is usually applied to MSRP, not the negotiated price.
  • Negotiated Price (Cap Cost): The price you and the dealer agree on before incentives. Lowering this number lowers your payment.
  • Residual Value: The projected value of the vehicle at lease end, expressed as a percentage of MSRP.
  • Money Factor (MF): The lease’s interest rate. As a rule of thumb, APR / 2400 ? MF.
  • Adjusted Cap Cost: Your net amount financed after fees and cap cost reductions (cash, trade, rebates).

Steps to Use the Lease Calculator

  1. Enter the vehicle’s MSRP and your negotiated selling price.
  2. Add any fees (acquisition/bank fee and other upfront fees).
  3. Enter cap cost reductions (cash down, trade-in value, and rebates).
  4. Provide the lease term in months, the residual percentage, and the money factor.
  5. Add your local sales tax rate if applicable.
  6. Submit to see monthly payment, due at signing, and total cost.

Tips to Lower Your Lease Payment

There are several levers you can pull to reduce your monthly lease cost. The most impactful is the negotiated selling price: shop around for quotes and ask for a detailed out-the-door worksheet. Captive finance incentives and rebates can meaningfully reduce your cap cost, so be sure to check for loyalty, conquest, military, college grad, or regional offers. A higher residual and a lower money factor also help. You can’t directly control residuals, but you can choose models and trims with stronger resale projections. For the money factor, excellent credit and captive financing often yield better rates.

Another strategy is to balance your due-at-signing amount with your monthly payment. While putting cash down can lower your payment, large down payments can be risky if the vehicle is stolen or totaled early in the term. Instead, consider keeping down payment modest and focus on securing a competitive selling price and money factor.

What the Results Mean

Your results include base monthly payment, estimated sales tax, and the monthly total. You’ll also see an estimated due at signing that typically includes your first month’s payment, acquisition fee, other upfront fees, and any cash down (less applicable rebates). Finally, the calculator estimates your total lease cost and an effective monthly that averages all costs across the full term. Use these figures to compare offers across dealers and to understand how each term affects your budget.

Common Mistakes to Avoid

  • Comparing deals by payment only. Always compare selling price, money factor, residual, and fees.
  • Ignoring fees. Acquisition and doc/DMV fees can meaningfully affect your due-at-signing and total cost.
  • Misreading money factor. Ensure you convert APR to MF correctly (APR / 2400).
  • Underestimating taxes. States differ on how and when tax is applied; our default applies it monthly.

With this Lease Calculator, you’ll be equipped to decode dealer quotes, identify the true drivers of your payment, and lock in a lease that fits your financial goals.

FAQs

How does the Lease Calculator estimate my monthly payment?

It calculates depreciation and finance charges from your inputs, then applies sales tax to estimate your monthly payment.

What inputs do I need for the Lease Calculator?

You need MSRP, negotiated price, residual percent, money factor, term, fees, and any down payment, trade-in, or rebates.

Does the Lease Calculator include sales tax?

Yes. It applies your entered tax rate to the monthly payment, which reflects how many states tax leases.

Can the Lease Calculator handle rebates and trade-ins?

Yes. Enter rebates and trade-in value; both reduce your capitalized cost and can lower the payment.

What is the money factor in the Lease Calculator?

It’s the lease interest rate. Convert APR to MF by dividing APR by 2400, e.g., 3% APR ? 0.00125 MF.

How does the Lease Calculator compute due at signing?

It estimates first month’s payment plus acquisition and other fees and any cash down, minus applicable rebates.

Will the Lease Calculator show total lease cost?

Yes. It sums all monthly payments with tax and adjusts for fees, down payment, and rebates to show a total.

Is the Lease Calculator accurate for every state?

It’s a close estimate, but tax rules vary by state. Confirm with the dealer’s official worksheet.