How to Calculate Your Auto Lease Payment

It is helpful to go into the dealership having an understanding of how to calculate your auto lease payment. Although every dealership is unique, knowing the basic components that go into an auto lease payment can save you time and money. Take control by understanding the following three concepts: Depreciation, Financing, and Sales Tax.


The amount the vehicle is estimated to depreciate during the time you are driving it is going to be a major factor in your car lease payment. Depreciation is the difference between the vehicles original, full price value and its value at the end of the lease.

It is important to note that different makes and models of vehicles can have different depreciation rates, making a vehicle with the lower depreciation rate the best deal. The smaller the difference between initial cost and lease-end value, the lower the lease payment, the better the lease deal.


Financing is what pays the leasing company for the use of their vehicle over the agreed upon time; similar to the interest you pay on a loan. The financing fee is also driven by your credit score; therefore, a higher credit score would yield  a lower monthly payment.

Sales Tax

Once the dealership calculates the depreciation and financing fee, sales tax must be added. In the state of Texas, sales tax rates are 6.25% of your vehicle’s purchase price. Unsure of your local sales tax?

Getting an idea of what your lease payments will look like will help you plan your next car lease. If you have any questions about how to calculate your lease payment, our D&M representatives are here to help. Also, feel assured that whenever you’re leasing with D&M, you’re receiving the lowest rate son any consumer lease with the EZ Lease.