Auto Lease Calculator
Car Lease Payment Calculator • 2026 rates
Quick Answer
Lease Payment Formula: Monthly Payment = (Capitalized Cost - Residual Value) ÷ Lease Term + Capitalized Cost × Money Factor. For $35,000 car with 60% residual over 36 months: $420/month.
Vehicle Details
Payment Details
Advanced Options
Lease Analysis
$420.00
Monthly Payment
$15,120.00
Total Lease Payments
$20,440.00
Residual Value
$11,560.00
Total Depreciation
| Item | Amount | Details |
|---|---|---|
| MSRP | $35,000.00 | Manufacturer's suggested retail price |
| Negotiated Price | $32,000.00 | Actual purchase price |
| Down Payment | $2,000.00 | Initial payment |
| Adjusted Cap Cost | $30,000.00 | Negotiated price minus down payment |
| Residual Value | $20,440.00 | Estimated value after lease |
| Depreciation | $9,560.00 | Loss in value during lease |
| Payment Component | Amount | Details |
|---|---|---|
| Monthly Depreciation | $265.56 | Depreciation ÷ Lease Term |
| Monthly Interest | $154.44 | Adjusted Cap Cost × Money Factor |
| Sales Tax | $0.00 | On monthly payment |
| Acquisition Fee | $595.00 | One-time fee |
| Security Deposit | $0.00 | Refundable deposit |
Lease Basics
What is Leasing?
Renting a vehicle for a fixed term with option to buy at end. You pay for depreciation during lease.
Lease Payment Formula
Monthly Payment = (Capitalized Cost - Residual Value) ÷ Lease Term + Capitalized Cost × Money Factor
Money Factor = Annual Interest Rate ÷ 2400
Key Rules:
- Typically 24-48 month terms
- Mileage limits (usually 10k-15k/year)
- Wear and tear restrictions
- Option to purchase at lease end
Strategies
When to Lease
Lease if you prefer new cars every few years and stay within mileage limits.
Lease Negotiation Tips
- Negotiate MSRP down as much as possible
- Research fair market residual values
- Minimize acquisition fees
- Understand all fees and charges
Considerations:
- Penalties for excess wear and tear
- Mileage restrictions
- No equity building
- Continuous monthly payments
FAQ
Q: What's the difference between lease and buy?
A: Leasing: Pay for depreciation, return car. Buying: Pay full value, keep car. Lease = lower monthly, buy = build equity.
Q: What happens if I exceed mileage limits?
A: Typically $0.15-$0.25 per mile over limit. For 15,000 miles over limit: $2,250-$3,750 penalty.
About
CFP Team
This calculator was created
This calculator was created by our Financial Calculators Team , may make errors. Consider checking important information. Updated: April 2026.