Auto Lease Calculator
Work out the true monthly cost of leasing a car: monthly depreciation on the value the car loses, the rent charge from the money factor, and sales tax — with a full step-by-step breakdown and the equivalent APR.
TheCalculators — Auto Lease Calculator
Printed thecalculators.com
Monthly Lease Payment
$617.99
36 months · $40,000 net cap cost · $24,000 residual
- Net Capitalized Cost
- $40,000.00
- Monthly Depreciation
- $444.44
- Monthly Rent Charge (interest)
- $133.12
- Monthly Sales Tax
- $40.43
- Total of Payments
- $22,247.78
- Total Cost (payments + down)
- $32,247.78
- Effective APR
- 4.99%
- Depreciation Share
- 72%
Where each payment goes
- Depreciation$444
- Rent Charge$133
- Sales Tax$40
How the lease payment is built
- 1Net capitalized cost$50,000 − $10,000 down − $0 trade = $40,000
- 2Amount to amortize$40,000 − $24,000 residual = $16,000
- 3Monthly depreciation$16,000 ÷ 36 months = $444.44
- 4Monthly rent charge($40,000 + $24,000) × 0.00208 = $133.12
- 5Monthly tax($444.44 + $133.12) × 7.0% = $40.43
- 6Total monthly payment$444.44 + $133.12 + $40.43 = $617.99
Watch the mileage allowance (typically 10,000-15,000 mi/yr; overage costs $0.05-$0.20 per mile) and excessive wear-and-tear charges at turn-in. A purchase option at lease end costs the residual value.
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Formula
Payment = (Cap Cost − Residual)/n + (Cap Cost + Residual) × MF + tax
Pro tips
- • Negotiate the car price as if buying — a lower capitalized cost is the biggest lever on a lease.
- • Money factor × 2,400 = APR. Anything above ~0.0025 (6% APR) deserves scrutiny.
- • Slowly-depreciating vehicles lease cheapest because you only pay for value lost.
FAQ
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