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Auto Lease Calculator

Calculate your monthly car lease payment including depreciation, rent charge and sales tax. Estimate the total cost of a lease.

$
$
%

Expected value at lease end, usually set as a % of MSRP.

% p.a.
months
%

Monthly lease payment

$490.21

Tax-inclusive (7%)

Residual value

$19,250

Value at lease end

Total of payments

$17,648

Over 36 months

Rent charge

$2,743

The financing cost of the lease

Lease payment = depreciation + rent charge (interest), with tax on top. Negotiating the price and keeping the residual high are the two big levers.

How it works

Depreciation = (cap cost − residual) ÷ term. Rent charge = (cap cost + residual) × money factor. Payment = depreciation + rent charge + tax.

Example: $35,000 car, $22,000 residual, 0.0018 MF, 36 months → ~$477/month + tax.

Auto Lease Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Calculate your monthly car lease payment including depreciation, rent charge and sales tax. Estimate the total cost of a lease. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.

Popular uses: auto lease calculator · car lease calculator · car lease payment calculator

Last updated: August 2026

How We Calculate

This calculator uses standard mathematical formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server. The formulas used are industry-standard and match those used by banks, financial institutions and health organizations.

For financial calculators, we use RBI-approved formulas and regularly updated bank rates. For health calculators, we use WHO-recommended formulas and medical standards. All rates and standards are sourced from official government and regulatory websites.

Frequently Asked Questions

How is an auto lease payment calculated?

Your payment is the depreciation over the lease term (capitalised cost minus residual, divided by the months) plus a rent charge based on the average of the cost and residual.

What is the residual value in a car lease?

It is the predicted value of the car at the end of the lease, set by the leasing company. A higher residual means lower depreciation and a lower monthly payment.

How does a larger down payment affect a lease?

More money down (capitalised cost reduction) lowers the financed portion and your monthly payment, though putting a big lump sum on a lease is often discouraged since you don't own the car.

Is this auto lease calculator free to use?

Yes, True Calculator's auto lease calculator is completely free with no sign-up, no app install and no usage limits.

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