Lease Calculator
Estimate your monthly car lease payment from the vehicle price, residual value, money factor, and lease term.
Estimated value at lease end
e.g. 0.00125 (multiply APR by 2400 to estimate)
Estimated monthly payment
$485.66
What Your Result Means
Your monthly lease payment has two parts: a depreciation fee (paying for the value the car loses over the lease) and a finance fee (like interest, based on the money factor). Adding sales tax gives your total monthly payment.
How It Is Calculated
Depreciation Fee = (Cap Cost - Residual Value) / Term
Finance Fee = (Cap Cost + Residual Value) × Money Factor
Monthly Payment = (Depreciation + Finance Fee) × (1 + Sales Tax)
Worked Example
A $35,000 vehicle with a $19,000 residual value, a 0.00125 money factor, a 36-month term, $2,000 down, and 7% sales tax comes out to roughly $520/month.
Important Assumptions
- This is an estimate - actual dealer quotes may include additional fees (acquisition, disposition) not modeled here.
- To convert an APR to a money factor, divide the APR by 2400 (e.g., 6% APR ÷ 2400 = 0.0025).
Frequently Asked Questions
- What is a money factor?
- A money factor is how lease interest is expressed, usually a small decimal like 0.00125. Multiply it by 2400 to get the roughly equivalent APR.
- What is residual value?
- The car's estimated worth at the end of the lease, set by the leasing company. A higher residual value generally means a lower monthly payment.
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Methodology
This calculator uses the standard lease payment formula used across the auto finance industry. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.