Auto lease calculator
Monthly lease payment split into depreciation and finance charge, plus total lease cost.
About the auto lease calculator
Monthly lease payment split into depreciation and finance charge, plus total lease cost.
Part of SmartCalcy’s auto & leasing tools. It runs in your browser with no account, uses your own currency and units (change them at the top of the page), and gives estimates for information only, so check official guidance before you rely on a result.
How to use the auto lease calculator
What it calculates and when to use it
Estimate a lease payment from the price, residual value, term and rate. It splits the payment into the cost of the car’s depreciation and a finance charge.
How to use it, step by step
- Enter the vehicle price and the residual value at lease end as a percentage.
- Enter your up-front payment, any trade-in and fees added to the lease.
- Enter the term in months, the interest rate (APR) and the tax on each payment.
What each input means
- Residual – What the vehicle is expected to be worth at the end, as a percentage of price.
- Paid up front – A deposit that reduces the capitalised cost.
- Rate – APR. The money factor is APR ÷ 2400.
How to read the results
- Monthly lease payment – Depreciation, finance charge and any tax.
- Total cost of the lease – All payments plus what you pay at the start.
The formula
Depreciation = (capitalised cost − residual) ÷ term. Finance charge = (capitalised cost + residual) × money factor. Payment = (depreciation + finance charge) × (1 + tax rate).
A worked example
A 35,000 car with a 60% residual (21,000), 2,000 down and 795 of fees has a capitalised cost of 33,795. Over 36 months at 6% the depreciation is 355.42, the finance charge is 136.99 and the payment is 492.40, so the lease costs 19,727 including the deposit.
Assumptions and limits
- Mileage limits and wear charges are not included.
- You own nothing at the end unless you buy the vehicle.
- Fees and rules differ by country and by lender.
Common mistakes
- Comparing lease payments with loan payments without considering what you own at the end.
- Forgetting mileage and end-of-lease charges.
Frequently asked questions
What is a money factor?
A lease’s interest rate expressed as a small decimal. Multiply by 2400 to get an approximate APR.
Is leasing cheaper than buying?
The payment is usually lower, but you have no asset at the end. Compare total costs over several cycles.
Related tools
Details
- Money factor
- 0.0025APR ÷ 2400
- Residual value
- £21,000.00
- Amount to depreciate
- £12,795.00
- Paid at the start
- £2,000.00
- Total cost of the lease
- £19,726.55payments plus money up front