Car Lease Calculator
Calculate a car lease payment from the price, residual value, money factor and term — with the depreciation and finance charges broken out.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the negotiated price (capitalized cost), down payment and residual percentage.
- 2Enter the money factor (or APR) and the lease term.
How it's calculated
Depreciation = (net cap cost − residual) ÷ months. Finance charge = (net cap cost + residual) × money factor. Payment = (depreciation + finance) × (1 + sales tax). Money factor = APR ÷ 2400.
Frequently asked questions
What is a money factor?
The lease's interest rate in another form. Multiply by 2,400 to get the approximate APR — 0.00125 is about 3%.
What is the residual value?
The car's expected value at lease end, set by the leasing company as a percentage of MSRP. A higher residual means a lower payment.
Is sales tax charged on lease payments?
In most US states it's charged on each monthly payment, not the car's full price. A few states tax differently.