A fixed-payment lease estimate
This calculator models a vehicle lease using a money factor and an agreed residual. It separates depreciation, a constant monthly rent charge and tax on the monthly payment. It does not retrieve dealer offers, determine credit eligibility or produce the lessor's required disclosures.
How to enter a quote
- Enter MSRP and the negotiated vehicle price separately. Residual dollars are MSRP multiplied by the quoted residual percentage. Use the lessor's residual for the specific term and mileage allowance, not a forecast resale price.
- Enter only fees being financed under Capitalized Fees. Enter cash down, positive net trade-in equity after its loan payoff, and rebates separately. Negative equity and fees paid upfront are outside this model.
- Enter the quoted money factor and whole lease term. Apply a tax rate only if the applicable tax is charged on monthly payments. Other tax bases require a separate calculation.
- Calculate, then reconcile each component against the written quote. Changing an input clears the old result. Defaults are constructed examples, not market offers.
Formulas and cash-flow accounting
Adjusted capitalized cost
Negotiated price + financed fees − cash down − net trade-in equity − rebates. This amount must be positive and at least the residual for the supported model.
Monthly base payment
(Adjusted cost − residual) ÷ months + (adjusted cost + residual) × money factor. Monthly tax is this base payment multiplied by the entered tax percentage.
Cash at signing and over the term
Cash at signing is cash down + first payment. Modeled cash outlay is cash down + all monthly payments. The first payment is counted once; financed fees are already included in those payments.
Trade-in and rebates
Trade-in equity is value surrendered, even though it is not a fresh cash payment. The separate cash-plus-trade-in total includes it. Rebates reduce cost without being treated as your own contributed cash.
A constructed arithmetic check
For adjusted cost $30,000, residual $18,000, 36 months, money factor 0.00125 and zero tax: depreciation is $333.333… per month and rent is $60, giving $393.333… monthly. With no cash down the modeled payment total is $14,160. The display rounds dollars to cents, while totals use unrounded calculations; an actual contract's rounding may differ.
Money factor × 2,400 is a rough annual rate equivalent: 0.00125 gives 3%. It is not an all-in loan APR and excludes fees from that rate comparison. The table uses straight-line depreciation to the residual; its balance is neither an early payoff amount nor a prediction of market value.
Compare complete alternatives
A lower monthly payment alone does not establish a cheaper alternative. Use the same time horizon and mileage, then compare upfront contributions, total payments, taxes, insurance, maintenance, end charges and ownership or resale value. This tool does not calculate a purchase loan or a lease-end buyout.
What to verify in the agreement
- Check which fees are financed and which are due upfront. Never add a financed fee again to cash due.
- Confirm local taxation of monthly payments, down payments, incentives and the vehicle itself. A single percentage here cannot represent every jurisdiction.
- Read the mileage allowance, excess-mile and wear charges, disposition fee, purchase-option fee and early-termination method; none is included in the output.
- Check insurance, loss or theft treatment and any gap waiver. The effect on an upfront payment depends on the contract.
- Compare actual residuals and money factors for each term. A longer term is not guaranteed to lower total cost, and a residual percentage is not a quality rating for the vehicle.
Sources: CFPB lease-versus-buy explanation, Regulation M disclosure components, and Federal Reserve upfront versus capitalized costs. The calculator is a simplified comparison aid, not a disclosure-compliance determination.