Auto Lease Calculator

Field guide

List Price.

Enter the Manufacturer's Suggested Retail Price.

MRM.

The Maximum Residual Amount (MRM) is the maximum amount that the finance company will consider as a basis for calculating the residual value. This is typically the same as the MSRP, but can be lower for vehicles that have high depreciation or are equipped with excess options that will not add to the resale value of the vehicle.

Negotiated Price.

The selling price of the car. This should not include the down payment or other capital cost reductions such as a trade-in.

Residual Amount.

Enter the residual amount in dollars or as a percentage. Type a percent sign (%) after the amount when entering the residual amount as a percentage.

Title, Registration.

Non-taxable administrative charges that are typically included in the amount due at signing.

Doc Fees.

Taxable administrative charges that are typically included in the amount due at signing.

Acquisition Fee.

A fee charged by the finance company to originate financing for the vehicle. This is taxable in some states.

Security Deposit.

A refundable deposit that is returned to the buyer if the car is either traded in without wear and tear or if the car is purchased at the end of the lease.

Lease Period.

The length of the lease in months.

Sales Tax.

The sales tax rate charged by the state in which the car is registered. Except in Illinois, this tax applies to the Negotiated Price minus the Residual Value; in Illinois the tax applies to the Negotiated Price. Some states may tax documentation fees and acquisition fees. Always enter this as a percentage.

Luxury Tax Rate.

A one-time tax on the negotiated price assessed by some states (e.g. New Jersey has a .4% luxury tax). This can be entered as a number (.004) or as a percent (.4%). The luxury tax is typically added to the Capital Cost.

Other Fees.

Enter any additional taxable fees that are amortized over the term of the lease.

Capital Cost.

The sum of all charges that are subject to financing.

Capital Cost Reduction.

Any credits towards the Negotiated Price that are paid at the time of lease inception. Cash down payments and trade-ins are some examples.

Money Factor.

The finance rate, expressed as a number that can be used to quickly calculate the finance charge. Ask your sales person what the money factor is for your lease.

Tax.

The sum of all taxes on the vehicle, which may include tax on finance charges, doc fees, and any applicable luxury taxes.

Depreciation.

The amount that the vehicle will lose value over the life of the lease divided by the number of payments.

Residual Amount (result).

The dollar amount of the residual value. This is displayed if the Residual Percent was entered above.

Monthly Payment.

The amount due each month.

Due at Signing.

The amount due at lease inception. This typically includes the security deposit, registration fees, the acquisition fee, doc fees, and the first month's payment.