Auto Lease Calculator
Estimate a closed-end auto lease payment by separating depreciation, rent charge, payment tax, and signing cash.
Content updated August 3, 2026
Educational closed-end lease estimate. The tax input models tax on each base payment only. Due at signing includes the entered cash portion of the cost reduction and first payment, but excludes deposits, registration, acquisition or disposition amounts paid separately, prior-lease balances, purchase-option costs, mileage, wear, insurance, and jurisdiction-specific taxes. “Money factor × 2,400” is a comparison convention, not a disclosed APR or annual lease rate.
A vehicle lease payment is built from the adjusted capitalized cost, residual value, depreciation over the term, a rent charge, and any taxes or other periodic amounts. This calculator exposes those pieces instead of showing only one monthly number.
Enter MSRP separately from the negotiated vehicle price because the residual percentage is commonly applied to MSRP while the negotiated price contributes to gross capitalized cost. The tax input deliberately models one simple case—tax applied to each base payment—because lease taxation varies by jurisdiction.
The Auto Lease formula
Adjusted cap = negotiated price + capitalized fees − reduction; residual = MSRP × residual %; base monthly = (adjusted cap − residual)/n + (adjusted cap + residual) × MFn = whole lease months · MF = entered decimal money factor · modeled monthly payment = base monthly × (1 + payment tax rate).
Worked example
For a $40,000 MSRP, $38,000 negotiated price, $1,000 capitalized fees, $3,000 total cost reduction paid in cash, 60% residual, 36 months, 0.002 money factor, and 8% tax on each base payment, adjusted cap cost is $36,000 and the modeled monthly payment is $489.60.
Assumptions, rounding, and limitations
Assumptions
- All money inputs and outputs use the selected currency; MSRP and negotiated price are separate inputs.
- The residual percentage is applied to MSRP and the resulting residual does not exceed adjusted capitalized cost in the supported model.
- Depreciation and rent charge are spread into equal monthly base payments for one closed-end lease scenario.
- The entered money factor remains constant and monthly rent charge equals (adjusted capitalized cost + residual) multiplied by that factor.
- Tax is modeled only as the entered percentage of each base monthly payment.
- Modeled due at signing is the entered cash portion of capitalized cost reduction plus the first monthly payment; rebates and trade credits can reduce capitalized cost without being counted as signing cash.
- The first payment is part of the stated number of scheduled payments.
Rounding: All components retain floating-point precision until display. Currency values use up to two decimal places, residual percentage and money factor remain user-entered, and the money-factor comparison uses three displayed percentage decimals.
Limitations
- Supports money inputs up to 1 trillion, residuals from 0% to 100%, whole terms from 5 to 120 months, money factors from 0 to 0.1, and payment tax rates from 0% to 100%.
- Excludes security deposits, fees paid separately, registration, prior-lease balances, trade-equity detail, jurisdiction-specific tax bases, refundable amounts, mileage, wear, maintenance, insurance, early termination, disposition, and purchase-option cash flows.
- Money factor multiplied by 2,400 is shown only as a comparison convention, not as APR or an annual lease rate. The estimate is not a contract disclosure, quote, or legal determination.
Sources
- 12 CFR Part 1013 — Consumer Leasing (Regulation M) — Consumer Financial Protection Bureau
- § 1013.4 Content of Disclosures — Consumer Financial Protection Bureau
- Appendix A to Part 1013 — Model Forms — Consumer Financial Protection Bureau
- Financing or Leasing a Car — Federal Trade Commission
From capitalized cost to base payment
Regulation M defines gross capitalized cost as the agreed vehicle value plus other capitalized items. Capitalized cost reduction lowers that amount, producing adjusted capitalized cost. The residual is the assigned end-of-term value used in the base payment calculation.
Monthly depreciation is adjusted capitalized cost minus residual, divided by the term. The estimated monthly rent charge uses the entered money factor multiplied by adjusted capitalized cost plus residual. Adding those two pieces gives the base payment before the selected payment-tax estimate.
Compare disclosures, not just the monthly result
Regulation M requires a motor-vehicle lease payment calculation to disclose gross and adjusted capitalized cost, residual value, depreciation and amortized amounts, rent charge, base payment, taxes, and total periodic payment in a prescribed progression. Compare each modeled component with the transaction disclosure.
The FTC explains that lease payments cover expected depreciation plus a rent charge, taxes, and fees, and warns that mileage, wear, maintenance, insurance, and early termination can add costs. The smallest displayed monthly payment is therefore not necessarily the smallest total cost.
Frequently asked questions
▶Why are MSRP and negotiated price separate?
The negotiated price contributes to gross capitalized cost, while this model applies the residual percentage to MSRP. Using one value for both can misstate depreciation.
▶What is adjusted capitalized cost?
It is gross capitalized cost minus the capitalized cost reduction and is the amount used with residual value to build the modeled base payment.
▶What does the money factor do?
The model multiplies the money factor by adjusted capitalized cost plus residual value to estimate the monthly rent charge. Enter the decimal factor quoted for the lease.
▶Is money factor multiplied by 2,400 an APR?
No. The displayed product is only a common comparison convention. It is not labeled as an APR or annual lease rate, and the lease disclosure controls the actual rent charge and terms.
▶Does due at signing include every upfront charge?
No. It includes the entered cash portion of the cost reduction plus the first modeled monthly payment only. Rebates and trade credits reduce capitalized cost but are not counted as signing cash; deposits, registration, separately paid fees, and other items are excluded.
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Open calculator →Disclaimer: Auto Lease Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.