Negotiate the price
The cap cost is negotiable, just like a purchase price. Every $1,000 off lowers each payment.
Free · Updates as you type
Lease Calculator.
Estimate your monthly lease payment, what you'll pay at signing and the total cost of the lease, with your mileage, fees and rate.
Estimated monthly lease payment
$525/mo
for 36 months, including tax
Due at signing$2,525
Total lease cost$20,903
Each month$525
- Depreciation$365.42
- Rent charge$128.78
- Sales tax$30.89
- Adjusted cap cost
- $35,195
- Residual value (buyout)
- $22,040
- Total rent charge
- $4,636
- Money factor
- 0.00225
- Estimated mileage charge
- $0
Already found the car?
Check its VIN before you buy →Estimate only, not a lease offer. Actual residual value, money factor, and payment depend on the leasing company, your credit profile, and the specific vehicle.
How your payment is built
Three parts, one payment.
A lease payment covers the value the car loses, plus a finance charge and tax. Here's the math with your numbers.
1
Depreciation fee
($35,195 − $22,040) ÷ 36
(Adjusted cap cost − residual) ÷ months
$365.422
Rent charge
($35,195 + $22,040) × 0.00225
(Adjusted cap cost + residual) × money factor
$128.783
Sales tax
$494.20 × 6.25%
Base payment × your sales tax rate
$30.89$
Monthly payment
Paid for 36 months
$525.08Lease terms, explained
Speak the dealer's language.
- Capitalized cost
- The price of the car in the lease, plus any fees rolled in. Negotiate it like a purchase price.
- Cap cost reduction
- Money you pay upfront to lower the cap cost: a cash down payment or trade-in equity.
- Residual value
- What the leasing company expects the car to be worth at the end, set as a percentage of MSRP.
- Money factor
- The lease's finance rate. Multiply it by 2,400 to compare it with an APR.
- Acquisition fee
- A bank fee to start the lease. You can pay it at signing or roll it into the payments.
- Mileage allowance
- The miles per year included in the lease. Miles over the allowance are charged at the end.
Before you sign
4 ways to get a better lease.
Ask for the money factor
Ask for it in writing and multiply by 2,400. A dealer markup on the rate is common and negotiable.
Pick honest mileage
Choose an allowance that matches how you drive. Extra miles bought up front usually cost less than overage fees.
Leasing used? Check the VIN
On a used or certified lease, hidden damage can affect value and safety. Check its history before you sign.
Check a VIN →FAQ
Car lease questions.
What goes into a lease payment, and how this calculator works.
Still have questions?Our support team is here to help.
Contact usHow is a lease payment calculated?
A lease payment has two main parts. The depreciation fee is the adjusted capitalized cost minus the residual value, divided by the number of months. The rent charge is the adjusted capitalized cost plus the residual value, multiplied by the money factor. Sales tax is then added to the total in most states.
What is a money factor, and how does it relate to APR?
The money factor is the finance rate on a lease. Multiply it by 2,400 to get the equivalent APR: a money factor of 0.00225 is about 5.4% APR. Use the APR / Money factor switch to enter whichever your quote shows.
Should I put money down on a lease?
A down payment lowers the monthly payment, but if the car is totaled or stolen early in the lease, that money is usually not returned. Many people keep the amount due at signing low for that reason.
What happens if I drive more than my mileage allowance?
Miles over the allowance are charged at the end of the lease, typically around $0.15 to $0.30 per mile. Enter the miles you expect to drive to see an estimated charge, or choose a higher allowance.
Is sales tax charged on the whole car?
In most states, tax on a lease is charged on each monthly payment, not the full price. Some states tax differently, so check your state's rules for an exact number.