A walkthrough, end to end.
- 1
Enter the negotiated price (cap cost), residual value, money factor, term and any down payment or trade-in.
- 2
Add sales tax % so the calculator estimates the after-tax monthly payment.
- 3
See depreciation, finance, and tax components side-by-side.
Auto lease math
Adjusted cap cost = price − down − trade-in. Monthly = depreciation fee + finance fee. With sales tax applied to monthly (most US states): monthly with tax = (depreciation + finance) × (1 + tax%/100).
What you can do with this.
Negotiating a car lease
Three negotiable inputs: cap cost (the price), money factor, and possibly residual (rare). Most lease shoppers focus only on monthly payment — leverage is at the cap cost level.
Sign-and-drive vs. with money down
Putting cash down lowers monthly but you lose it if the car is totaled (insurance pays residual + remaining lease but rarely your down payment). $0 down leases are usually preferred.
Mileage allowance
Standard lease: 10K–12K miles/yr. Excess mileage charged $0.15–0.30/mile at lease end. Negotiate higher mileage upfront ($0.10–0.15/mile prepaid) if you're a high-mileage driver.
Lease end disposition fee
Most leases charge $300–500 disposition fee when you turn in the car. Waived if you lease another from same brand. Add to total lease cost when comparing brands.
Residual percentage
Common 36-month residuals: 50–60% of MSRP. Higher residuals = lower lease payments. Leases on premium brands (Toyota, Honda, Lexus) often have higher residuals because they hold value better.
GAP insurance for leases
Standard on most leases — covers the gap between insurance payout and remaining lease balance if totaled. Verify it's included; if not, add ~$10–15/month.
Single-pay leases
Pay the entire lease upfront for ~5–10% discount. Tying up that much cash is rarely worth the small savings unless you're using a 0% lease deal.
Auto lease 2026 — what's current
EV lease deals remain attractive due to manufacturer incentives passed through as cap cost reductions. Internal-combustion lease attractiveness varies by brand — sedan deals often beat SUV deals.
Frequently asked.
Lease for: shorter holding periods (under 4 years), latest tech and features, lower monthly payment, business deductions. Buy for: long holds, high mileage, cumulative cost, no end-of-lease friction.
Convert to APR (× 2400). Manufacturer-subsidized leases sometimes offer 0–3% effective APR. Standard leases typically run 5–8% effective APR. Above 8%, look for a different lender or buy instead.
Yes but expensive. Options: lease transfer (Swapalease, LeaseTrader), buyout the lease, or pay early termination fees. Most leases penalize 5–10% of remaining payments.
No. Calculations run entirely in your browser.