Auto Lease Calculator
Most lease calculators assume your state taxes each monthly payment. Many don't — and the difference can be thousands of dollars at signing. This one models each state's actual regime, supports multiple security deposits, and shows the effective monthly cost that advertised offers are designed to hide.
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Vehicle
Residual is a % of this, never of selling price
Lease terms
= $27,000 at lease end
4.44% APR equivalent
A down payment is not a discount
Fees
Due at lease end
Location
10 states verified against primary sources. More in progress.
Added to the 7.250% state rate
California: Tax is charged on each monthly payment as it is billed, so it is spread across the term rather than owed at signing.
Multiple security deposits
Where these numbers come from. Captive lenders do not publish deposit terms — there is no rate sheet to cite. These figures come from corroborated lease-community reporting, which is the best source that exists for them, and are shown on that basis rather than presented as official. BMW's reduction moved from 0.00007 to 0.00006 after 2020, so confirm the current terms with your dealer before signing. Source discussion
True cost per month what you actually pay
$610.08
Advertised payment would be $596.33/mo. This spreads $596.33 due at signing across all 36 months.
Monthly payment
Depreciation$427.64
Rent charge (interest)$128.38
Sales tax$40.31
Monthly payment$596.33
Due at signing
First month$596.33
Due at signing$596.33
Over the full lease
Total rent charge$4,621.71
Total tax$1,451.21
monthly payment7.250%
Disposition fee (at end)$495.00
Residual / buyout$27,000.00
Total lease cost$21,962.92
Worth knowing
- CA has local surtaxes that are not included. The real rate is higher than 7.250%.
How lease math works
- How is a car lease payment calculated?
- A lease payment is depreciation plus a rent charge. Depreciation is the adjusted capitalized cost minus the residual value, divided by the term. The rent charge is the adjusted capitalized cost plus the residual, multiplied by the money factor. Sales tax is then applied according to your state rules.
- Do all states tax car leases the same way?
- No. There are four structurally different regimes. Most states tax each monthly payment, but Texas taxes the full vehicle price at signing, New York, New Jersey, Ohio and Illinois tax the total of all payments up front, and Georgia taxes depreciation plus down payment. On an identical lease the amount due at signing can differ by more than $2,500.
- How do you convert a money factor to an APR?
- Multiply the money factor by 2,400. A money factor of 0.00185 is 4.44% APR.
- What is the real monthly cost of a lease?
- Add the amount due at signing, every monthly payment and any end-of-lease fee, subtract refundable deposits, and divide by the term. An advertised payment can be set to almost any figure by shifting money into the amount due at signing.