Estimate your monthly payment on a new car or truck lease before you visit the dealership. Enter the MSRP, selling price, residual, money factor, term, taxes, and fees from your quote. This free car lease calculator shows your payment, your due at signing, and what the lease costs in total. No signup required.
Car Lease Payment Calculator
Enter the numbers from your dealer worksheet to calculate your monthly lease payment.
Payment Companion Lite is free for personal use, offered as a courtesy to car shoppers. It produces estimated payments from the numbers you enter and from program data available to us, which may be incomplete or out of date. We work to keep it accurate, but the figures here are estimates, not quotes, approvals, or offers, and any deal you negotiate using the calculator is your own responsibility. Use these estimates as a reference while you shop; the signed contract governs your final terms.
What Pro would catch here
This score only judges the numbers you entered. Pro checks whether those numbers match real-time lender programs: the current base money factor, the residual for this term and mileage, and the rebates this vehicle may qualify for.
The difference is who supplies the residual, money factor, and rebates. Lite is free and runs lease payments on whatever you enter, which means you have to find those three first. None of them are published. They come from the manufacturer's captive lender, they change every month, and they vary by vehicle, term, mileage, and region. Guessing is expensive: on a $45,000 lease, a money factor marked up by 0.0004 adds $27.56 a month, or $992 over 36 months, and a residual two points low adds another $23.42 a month, or $843. Miss on both and the lease costs $1,822 more than it should. Pro carries that data live. Pick the vehicle, term, and mileage, and the current program fills itself in.
Feature comparison between Payment Companion Lite and Payment Companion Pro
Feature
Lite (Free)
Pro (Subscription)
Residuals, money factors, and rebates
You enter them
Looked up for you, current each month
Lease and finance math
Yes
Yes
Price
Free
Paid subscription
Account required
No
Yes
Regional and ZIP-based programs
No
Yes
VIN and exact-trim matching
No
Yes
MSD and one-pay analysis
Enter rates manually
Automatic
Tax and fee handling
Manual settings
Expanded state rules
Side-by-side deal comparison
No
Yes
Save and share deals
Share by link
Save and share
Pro data availability varies by brand, lender, and region.
Payment Companion Pro
Choose Your Pro Plan
Every plan includes the full Pro toolkit and 50 pulls a month. Pick the billing term that fits how long you expect to shop.
1 month
$20 / month
Billed monthly, with a 2-month minimum.
Due today (first 2 months)
$40
Next bill in 2 months
$20
Then
$20 a month
Secure checkout with Stripe
Cancel anytime from your dashboard
Renews every month until you cancel.
Everything in Pro
50 live program pulls every month
Current money factors, residuals, APRs, and rebates, looked up for you
Regional and ZIP-based programs
VIN and exact-trim matching
Base vs. marked-up rate checks
MSD and one-pay analysis
Expanded state tax and fee rules
Lease and finance calculators
Side-by-side deal comparison
Save and share deals
Saved lookups reopen free for the rest of the month
A pull is one live program lookup, and reopening a car and ZIP you already pulled this month is free. If you cancel, you keep Pro until the end of the period you paid for. Program coverage varies by brand, lender, vehicle, region, and month.
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How to Calculate a Car Lease Payment
To calculate a car lease payment, add the depreciation charge, the rent charge, and the tax. Depreciation covers the vehicle's loss in value during the lease. The rent charge is the financing cost, set by the money factor. Both are calculated from the adjusted capitalized cost, so everything else in the deal reaches your payment through that one number: the acquisition fee, the doc fee, title, registration and plates, add-ons such as GAP or an extended warranty, and any negative equity from a trade. Each of those is a choice. Capitalize it, which dealers call rolling it in, and the payment goes up. Pay it at signing and your drive-off goes up instead. Cap cost reduction works the other way: cash down, rebates, and trade equity all lower the adjusted cap cost. Tax treatment depends on your state.
Monthly lease payment
Depreciation charge + Rent charge + Tax
Gross cap cost
Selling price + capitalized fees and add-ons
Cap cost reduction
Cash down + rebates + trade equity
Adjusted cap cost
Gross cap cost − Cap cost reduction
Depreciation charge
(Adjusted cap cost − Residual value) ÷ Lease term
Rent charge
(Adjusted cap cost + Residual value) × Money factor
Money factor is the lease version of an interest rate. Multiply it by 2,400 to compare it with an APR. Every fee is a choice. Capitalize it and it joins the adjusted cap cost, which raises both the depreciation and the rent charge, so the payment goes up by more than the fee divided by the term. Pay it at signing and the payment does not change, but you write a larger check on day one. A cap cost reduction works in reverse: cash down, rebates, and trade equity all lower the adjusted cap cost and cut both halves of the payment. Cash down and positive trade equity are the ones to watch, because unlike a security deposit they are gone if the car is stolen or totaled, since GAP pays the lender what is owed on the lease and not what you put in. Rebates are the manufacturer's money, so there is nothing of yours at risk. Lite runs all of this on the variables you provide: MSRP, selling price, term, mileage, taxes, and fees. The residual, money factor, and rebates matter most, and none of them are public. Pro has them in real time.
How Car Lease Payments Work: Depreciation, Rent Charges, and Taxes
A monthly lease payment combines depreciation, a rent charge, and applicable tax. Seeing each part makes a dealer quote easier to evaluate.
Depreciation: the vehicle's loss in value
The depreciation charge covers the difference between adjusted capitalized cost and residual value over the lease term. Adjusted cap cost starts with the negotiated price, adds anything rolled into the lease, and subtracts rebates, applied trade equity, and any cap-cost reduction. Residual value is the lender's estimate of the vehicle's lease-end value and is generally based on MSRP, not the negotiated price.
(Adjusted cap cost - Residual value) / Term
Rent charge: the lease's financing cost
The money factor is the rate used to calculate the lease's financing charge. Multiply it by 2,400 to estimate a comparable APR: a 0.00175 money factor equals a 4.20% APR. Dealers may mark up the lender's base money factor, so ask for the base rate and compare it with the quote.
(Adjusted cap cost + Residual value) x Money factor
Tax: based on state and local rules
Tax treatment varies by state and locality. Most states tax each monthly payment. New York and New Jersey tax the total of all lease payments at signing, though you can usually capitalize that tax instead of paying it up front, which spreads it across the payments and accrues rent charge on it. Texas, Maryland, and Virginia tax the full price of the vehicle. Illinois has taxed only the payments since 2015. Use the method your registration state levies, not the dealer's.
Worked example: Base payment x Tax rate
How Much Does It Cost to Lease a Car? A $45,000 Example
Assumptions: 36-month lease, 15,000 miles a year, 58% residual, 0.00175 money factor (4.20% APR), $3,000 off MSRP, $1,000 manufacturer rebate, and 6.625% sales tax on each payment. Every fee is capitalized, which means rolled into the lease instead of paid at signing. There is no cash down, which means no cap cost reduction.
Note: Cash down and out of pocket are not the same thing. Cash down is a cap cost reduction: money applied against the price, which lowers the payment. Out of pocket, also called the drive-off, due at signing, or inceptions, is everything you actually hand over on day one. In this example that is just the first month's payment, $623.00. A lease can have zero cash down and still cost you money at signing, and that gap is what most "zero down" advertising relies on.
Line-by-line lease payment breakdown for the worked example
Line item
Amount
MSRP
$45,000
Negotiated selling price
$42,000
Plus acquisition fee (capitalized)
$925
Plus doc fee (capitalized)
$499
Plus title, registration, and plates (capitalized)
$370
Gross capitalized cost
$43,794
Less cap cost reduction (manufacturer rebate)
−$1,000
Adjusted capitalized cost
$42,794
Residual value (58% of MSRP)
$26,100
Monthly depreciation
$463.72
Monthly rent charge
$120.56
Base monthly payment
$584.29
Sales tax at 6.625%
$38.71
Monthly payment
$623.00
Due at signing (first payment only, no cash down)
$623.00
Total lease cost over 36 months
$22,428.00
The estimated payment is $623.00 a month, including the illustrative tax. With the same assumptions, a $50,000 car lands near $700 a month. Note that none of the $623.00 due at signing is cash down: it is the first month's payment, not a cap cost reduction. The monthly payment alone does not tell you whether a lease is good. Compare the selling price, the base money factor, the residual value, the incentives you qualify for, the term, the mileage, the amount due at signing, and the total lease cost.
The same car three ways
The example above capitalizes every fee and puts nothing down. Here is what changes if you pay those fees at signing instead, or add $3,000 in cash down.
Fees capitalized, nothing down
Fees paid at signing
$3,000 cash down, fees capitalized
Adjusted capitalized cost
$42,794
$41,000
$39,794
Monthly payment
$623.00
$566.51
$528.54
Due at signing
$623.00
$2,360.51
$3,528.54
Total lease cost
$22,428.00
$22,188.36
$22,027.44
Putting $3,000 down cuts the payment by $94.46 a month, which looks like a lot. Over the full lease it saves $400.56. You are paying $3,000 up front to save about four hundred dollars, and if the car is stolen or totaled in month three that $3,000 does not come back. Paying the fees at signing instead of capitalizing them saves $239.64 and carries no added risk, since the fees are owed either way.
Car Lease Terms Explained
The terms you will see on a lease quote, explained in plain English.
MSRP:The manufacturer's suggested retail price, or sticker price, before negotiation. Residual value is generally calculated from MSRP, not the negotiated price.
Selling price:The negotiated vehicle price before rebates and fees are applied.
Capitalized cost:The negotiated vehicle price plus any other amounts financed through the lease, before cap-cost reductions are applied.
Adjusted capitalized cost:The amount used in the payment formula after adding capitalized fees and subtracting rebates, applied trade equity, and any cap-cost reduction.
Capitalized cost reduction:Cash, rebates, or positive trade equity applied to lower the adjusted capitalized cost and monthly payment. Dealer worksheets often shorten this to cap-cost reduction.
Residual value:The lender-set estimate of the vehicle's value at lease-end for a specific term and mileage, generally expressed as a percentage of MSRP.
Money factor:The lease equivalent of an interest rate, used to calculate the monthly rent charge. Multiply it by 2,400 to convert it to an APR.
Depreciation charge:The monthly portion of the difference between adjusted cap cost and residual value, spread across the lease term.
Rent charge:The monthly financing charge calculated from adjusted cap cost, residual value, and money factor.
Due at signing:The total paid when the lease begins, as set out in your lease agreement. It may include the first payment, upfront taxes and fees, cap-cost reduction, and refundable deposits.
Effective monthly cost:A comparison metric that spreads non-refundable upfront costs and scheduled payments across the term without double-counting the first payment or refundable deposits.
Captive lender:The manufacturer-affiliated finance company that may set lease residuals, money factors, incentives, and program rules.
Frequently Asked Questions
Answers about the calculator, its inputs, and the numbers on your lease quote.
No. Payment as a percentage of MSRP is only a rough shortcut. Taxes, cash due at signing, incentives, residual value, money factor, mileage, and term can all distort it. Compare the underlying inputs and total lease cost instead.
The 1.5% rule compares the monthly payment with the vehicle's MSRP. It is only a rough screening shortcut because it can hide due-at-signing costs, taxes, incentives, mileage limits, a marked-up money factor, and differences in term. Review the full lease structure and total cost before judging the deal.
There is no single figure because the payment depends on MSRP, selling price, residual value, money factor, term, incentives, taxes, and fees. In the worked example above, a $45,000 car is about $623 a month with a 36-month term, 58% residual, 0.00175 money factor, $3,000 discount, $1,000 rebate, $1,794 in capitalized fees, and 6.625% illustrative tax. The same assumptions put a $50,000 car near $700 a month. Enter your own quote for a deal-specific estimate.
Over a typical three-year term, leasing usually costs less per month, because you pay only for depreciation and the rent charge. Over many years of ownership, buying usually costs less, because the payments end and you keep the car. Compare both over the same period.
Leasing can lower the monthly payment for the same vehicle, while financing can lead to ownership after the loan is paid. Compare total costs over the same time period, including upfront cash, payments, taxes, fees, mileage, maintenance, and the vehicle's expected value. Use the Lease and Finance tabs above to run the same car both ways with consistent assumptions.
Enter the MSRP, selling price, term, mileage, residual value, money factor, incentives, taxes, and fees. Payment Companion Lite calculates the result from your inputs. Payment Companion Pro supplies the residual, money factor, and rebates from the lender's current program.
The money factor is the lease equivalent of an interest rate, used to calculate the rent charge. Multiply it by 2,400 to get a comparable APR.
Multiply the money factor by 2,400 to estimate a comparable APR. For example, 0.00175 x 2,400 = 4.20%. To convert an APR percentage back to a money factor, divide it by 2,400. The calculator above converts between the two as you type. This shortcut is a comparison tool, not a replacement for the contract disclosures.
The best benchmark is the lender's current base or buy rate for the exact vehicle, term, mileage, region, and credit tier, without a dealer markup. There is no universal money factor that is good for every brand or month.
Residual value is the lender's estimate of what the vehicle will be worth at lease-end. It is typically expressed as a percentage of MSRP and varies by model, term, and mileage.
Neither is printed on the window sticker. The manufacturer's captive lender sets both, and they change every month. Ask the dealer for an itemized worksheet, or use Payment Companion Pro to look up the current program for your vehicle, term, and mileage.
Adjusted cap cost is the amount used in the lease formula after adding capitalized fees and other rolled-in amounts, then subtracting rebates, applied trade equity, and any cap-cost reduction.
Mileage does not enter the payment formula directly. Higher annual mileage lowers the residual value, which raises the depreciation portion of your payment. The size of each step varies by lender, so use the residual from your own quote.
Yes. Enter the fees and choose whether eligible amounts are paid upfront or capitalized. The calculator applies common state tax methods, but final tax treatment and required fees can vary by state, locality, lender, dealer, and vehicle.
A lease acquisition fee is an administrative charge from the leasing company for originating the lease. It may be paid at signing or added to the capitalized cost, where it becomes part of the amount used to calculate the payment.
A disposition fee is a charge the leasing company may collect when you return the vehicle at the end of the lease. The contract sets the amount and may waive it in certain situations, such as leasing or buying another vehicle through the same lender.
Negotiate the vehicle's selling price, then verify the base money factor, residual value, incentives, fees, mileage, and total due at signing. Ask for an itemized quote and compare its money factor with the lender's base rate; a dealer markup can increase both the monthly payment and total lease cost.
Zero down generally means no cap-cost reduction, but you may still owe the first payment, taxes, and fees. Sign-and-drive or $0 due at signing typically rolls eligible upfront charges into the lease, which raises the monthly payment. Advertised meanings vary, so review the itemized amount due at signing instead of relying on the headline phrase.
A cash down payment, called a capitalized cost reduction, lowers the monthly payment. If the car is stolen or totaled, that money is usually gone. GAP coverage pays the lender what is owed on the lease, not what you paid down. Keep non-refundable drive-off costs low.
Multiple security deposits are refundable deposits that lower the money factor instead of the price. Availability, limits, reductions, and state rules vary by lender.
A one-pay lease prepays the entire lease in a single upfront payment instead of monthly, often in exchange for a lower money factor. Early termination and total-loss treatment vary by contract and lender.
Yes. Payment Companion Lite is a free public calculator with no account required. It calculates the payment from the numbers you enter.
The difference is where the numbers come from. Lite does the math, but you supply the residual, money factor, and rebates, so without a dealer worksheet you are estimating. Payment Companion Pro is a paid subscription that supplies them for you, current for the month and matched to your vehicle, term, mileage, and region. Pro also adds VIN lookups, side-by-side comparisons, and saved deals.
Lite can calculate a lease for any vehicle when you provide the required inputs. Payment Companion Pro coverage depends on the brands, vehicles, regions, lenders, and programs in its current database.
No. It is an estimate based on your inputs and common state tax methods. The final payment depends on lender approval, credit tier, program eligibility, dealer documents, state and local rules, and the signed contract.