Car Lease Calculator
Estimate a monthly car lease payment from the negotiated price, residual value, money factor and term.
How it works
Monthly = (adjusted cap cost − residual) ÷ months + (adjusted cap cost + residual) × money factor
A lease charges you for the depreciation you use plus a finance fee on the money tied up. The depreciation part spreads the drop from the adjusted capitalized cost (negotiated price minus your down payment) down to the residual value over the term. The finance part — the rent charge — applies the money factor to the sum of the two, which is why the money factor times 2400 gives the equivalent APR.
Worked example
A car with a $35,000 MSRP negotiated to $33,000, a 55% residual ($19,250), a 0.00125 money factor (~3% APR), 36 months and $2,000 down leases for about $389.20 a month — roughly $326.39 of depreciation plus $62.81 of finance charge.
Frequently asked questions
What is a money factor?
It is the lease version of an interest rate, written as a small decimal like 0.00125. Multiply it by 2400 to get the rough APR — 0.00125 × 2400 ≈ 3%.
Why is a high residual value good for a lease?
The residual is what the car is predicted to be worth at lease-end. A higher residual means less depreciation for you to pay across the term, which lowers the monthly payment.
Does this include tax and fees?
No. Leases usually add sales tax to the monthly payment plus acquisition and disposition fees, so your real payment will be somewhat higher than this estimate.
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Educational estimate, not financial advice — dealer terms, fees and taxes vary.