Car Lease Calculator
Estimate your monthly car lease payment from price, residual value and money factor.
This auto lease calculator estimates the monthly payment on a car lease from the vehicle's price, the negotiated capitalized cost, the residual value at lease end and the money factor. A lease payment is made up of two parts — a depreciation fee that covers the value the car loses while you drive it, and a finance fee that is the interest on the deal.
The residual value is a percentage of the MSRP that the car is expected to be worth when the lease ends, so a higher residual means less depreciation and a lower payment. The money factor is the lease equivalent of an interest rate; multiply it by 2,400 to see the approximate APR. Sales tax is applied to the base monthly payment.
How to use it
- 1Enter the vehicle MSRP and choose your currency.
- 2Add the negotiated capitalized cost, your down payment and the residual percentage.
- 3Set the lease term in months, the money factor and the sales tax rate.
- 4Read your monthly payment, depreciation and finance fees and equivalent APR.
Frequently asked questions
What is a money factor?+
The money factor is how lease interest is quoted. Multiply it by 2,400 to convert it to an approximate annual percentage rate — for example a money factor of 0.00125 equals about 3% APR.
What is the residual value?+
The residual value is the amount the leasing company expects the car to be worth at the end of the lease, set as a percentage of MSRP. A higher residual lowers depreciation and therefore your monthly payment.
Why is a lease cheaper than a loan?+
With a lease you only pay for the depreciation during the term plus finance charges, not the whole car. That usually makes the monthly payment lower than financing the full purchase price.
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