What is the auto lease calculator — monthly payment & total cost?
In short
A $35,000 car with 55% residual, $2,000 down, a 0.00125 money factor, 36-month term, and 8% tax costs roughly $432 per month. Money factor × 2,400 gives the APR — 0.00125 equals 3.0%. Every $1,000 negotiated off the selling price cuts the payment about $28 per month on a 36-month lease.
The Auto Lease Calculator computes your exact monthly lease payment and total lease cost using the standard lease formula. It breaks down depreciation, finance charge, and sales tax — and converts the money factor to APR so you can compare dealer offers to traditional loans.
How to use this calculator
- 1Enter the vehicle MSRP and your negotiated selling price (aim for below MSRP).
- 2Add your down payment and trade-in value — both reduce the capitalized cost.
- 3Enter the residual value percentage (from the dealer's lease sheet, typically 50–65%).
- 4Enter the money factor (e.g. 0.00125) — multiply by 2,400 to see the equivalent APR.
- 5Set your lease term (36 months is most common) and local sales tax rate.
The formula
- cap cost
- — Capitalized cost: negotiated price minus down payment and trade-in
- residual
- — Predicted value of the car at lease end (% of MSRP)
- money factor
- — Lease interest rate equivalent (× 2,400 = APR)
- term (months)
- — Length of the lease in months
Worked example
The scenario
MSRP $40,000. Negotiated price $38,000. Down $2,000. Residual 55% ($22,000). Money factor 0.00125. 36 months. Tax 8%.
The result
Cap cost = $38,000 − $2,000 = $36,000. Depreciation = ($36,000 − $22,000) ÷ 36 = $388.89. Finance charge = ($36,000 + $22,000) × 0.00125 = $72.50. Base = $461.39. Tax = $36.91. Monthly = $498.30.
Common use cases
- Compare lease deals from multiple dealers by plugging in each dealer's numbers.
- Evaluate whether a high residual or low money factor has more impact on your payment.
- Understand how a larger down payment changes your monthly cost vs. total cost.
- Convert a dealer's money factor to APR to compare against an auto loan rate.
Limitations & assumptions
- Does not include acquisition fees, disposition fees, or gap insurance — add these to total cost separately.
- Assumes sales tax applies to the monthly payment; some states tax the full vehicle price at signing.
- Mileage overage costs at lease-end are not included in total cost.
Frequently asked questions
What is money factor in a car lease?
What is residual value in a car lease?
Is it better to lease or buy a car?
How do I lower my monthly lease payment?
What happens if I go over the mileage limit on a lease?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.