Auto Lease Calculator
This professional-grade auto lease calculator helps shoppers and finance pros estimate monthly payments, taxes, due at signing, and total lease cost with clarity. It is designed for accuracy, accessibility, and speed across devices.
Lease Inputs
Results
All values are estimates. Taxes and fees vary by jurisdiction and contract.
Data Source and Methodology
Authoritative reference: Consumer Financial Protection Bureau (CFPB), Regulation M — Consumer Leasing (12 CFR Part 1013), current version as of 2024. Direct link: https://www.consumerfinance.gov/rules-policy/regulations/1013/. This regulation defines leasing terminology and disclosure standards used across the industry.
Supporting industry convention for conversion between APR and Money Factor: APR% = MF × 2400, widely adopted by U.S. captive finance companies and dealers.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Display formulas (LaTeX):
Adjusted Cap Cost:
\[ C_{\text{adj}} = \max\left(0,\; (P_{\text{sell}} + F_{\text{cap}}) - R_{\text{cap}} \right) \]
Residual Value:
\[ V_{\text{res}} = \text{MSRP} \times \frac{r_{\text{res}}}{100} \]
Monthly Depreciation Charge:
\[ D = \frac{C_{\text{adj}} - V_{\text{res}}}{n} \]
Monthly Finance (Rent) Charge:
\[ F = (C_{\text{adj}} + V_{\text{res}}) \times \text{MF} \]
Base Monthly (pre-tax):
\[ M_{\text{base}} = D + F \]
Sales Tax (by method):
Monthly-taxed states:
\[ T_{\text{mo}} = M_{\text{base}} \times t \]
Upfront on total of payments:
\[ T_{\text{up}} = (M_{\text{base}} \times n) \times t \]
Upfront on vehicle price:
\[ T_{\text{cap}} = P_{\text{sell}} \times t \]
Monthly with tax (for monthly-taxed): \[ M_{\text{with}} = M_{\text{base}} + T_{\text{mo}} \]
Variables: P_sell (negotiated price), F_cap (capitalized fees), R_cap (cap reductions), r_res (residual %), n (term), MF (money factor), t (tax rate as decimal).
Glossary of Variables
- MSRP — Manufacturer’s Suggested Retail Price (used for residual calculation).
- Negotiated Price (Cap Cost) — The agreed selling price before reductions and fees.
- Residual (%) — Residual percentage applied to MSRP to compute lease-end value.
- Money Factor (MF) — Lease finance rate per month. APR% = MF × 2400.
- Adjusted Cap Cost — Financed amount after adding capitalized fees and subtracting cap reductions.
- Depreciation Charge — Portion paying the difference between adjusted cap cost and residual.
- Finance (Rent) Charge — Interest-like charge based on adjusted cap cost and residual.
- Sales Tax — Applied per state rules (monthly, upfront on total payments, or upfront on price).
- Monthly Payment (with/without tax) — Customer payment each month.
- Due at Signing — First payment, upfront taxes, upfront fees, plus down payment minus trade credit.
- Total Lease Cost — All payments, taxes, and upfront amounts combined.
- Effective Monthly — Total lease cost divided by term.
Worked Example
How It Works: A Step-by-Step Example
Inputs: MSRP $40,000; Negotiated Price $37,000; Term 36 months; Residual 60%; Money Factor 0.0020 (≈ 4.8% APR); Acquisition Fee $650 (capitalized); Down Payment $2,000; Other financed fees $0; Upfront fees $0; Tax 8% on monthly payment.
Adjusted Cap Cost: C_adj = (37,000 + 650) − 2,000 = $35,650
Residual: V_res = 40,000 × 0.60 = $24,000
Depreciation: D = (35,650 − 24,000) / 36 = $326.39
Finance: F = (35,650 + 24,000) × 0.0020 = $119.30
Base Monthly: M_base = 326.39 + 119.30 = $445.69
Tax (monthly): T_mo = 445.69 × 0.08 = $35.66
Monthly with tax: M_with = $481.35
Due at signing (est.): first payment $481.35 + upfront taxes/fees $0 + down $2,000 − trade $0 = $2,481.35
Note: Actual taxes and fees depend on your state and contract. This example assumes monthly-taxed state and capitalized acquisition fee.
Frequently Asked Questions (FAQ)
How do I convert APR to Money Factor?
Use MF = APR% ÷ 2400. Example: 4.8% APR → 0.0020 MF.
Is residual based on MSRP or negotiated price?
Typically on MSRP. Your contract specifies the residual value and basis.
What drives a lower monthly payment?
Higher residual, lower money factor, lower adjusted cap cost (via discounts or cap reductions), and longer term (though longer term may increase total cost).
Should I put money down on a lease?
Down payments lower monthly payments but don’t always reduce total cost proportionally. Consider risk (e.g., total loss) and whether the lender reimburses upfront payments.
Why doesn’t my dealer quote match exactly?
State-specific taxes, fees, residual granularity, official MF, and rounding policies can cause differences. Use the same inputs and method to align.
What is “acquisition fee” and can I finance it?
It’s the lessor’s administrative fee. You can usually capitalize it (finance) or pay it upfront.
Does mileage affect residual?
Yes. Higher mileage allowances often reduce the residual percentage, increasing payments.