Car Lease Calculator
Work out a car lease payment the way dealers do. Enter the MSRP, negotiated price, residual percentage, money factor or APR, term, sales tax and money down to see the monthly payment split into depreciation, finance fee and tax.
Acquisition fee, doc fees, add-ons
e.g. 0.00250 (= 6% APR)
How to use the Car Lease Calculator
- Enter the MSRP and the price you negotiated, plus any fees rolled into the lease.
- Enter the residual % from the lease quote (often 50% to 65% for 36 months).
- Choose money factor or APR and enter the rate the dealer quoted.
- Set the term and sales tax, then any down payment or trade-in equity.
- Press Calculate lease payment to see the monthly payment and its breakdown.
Car lease formula
- Adjusted cap cost = negotiated price + rolled-in fees − down payment − trade-in equity − rebates
- Residual value = MSRP × residual %
- Depreciation fee = (adjusted cap cost − residual) ÷ term in months
- Finance fee = (adjusted cap cost + residual) × money factor
- Monthly payment = (depreciation fee + finance fee) × (1 + sales tax %)
- APR ≈ money factor × 2,400
Example: MSRP $35,000, price $33,000, $695 fees, $2,000 down, 58% residual, money factor 0.00250, 36 months, 7% tax. Adjusted cap cost = $31,695, residual = $20,300. Depreciation = $316.53, finance fee = $129.99, so the payment is $446.52 + $31.26 tax = $477.77 a month.
Money factor to APR
| Money factor | Approx. APR | Money factor | Approx. APR |
|---|---|---|---|
| 0.00100 | 2.4% | 0.00250 | 6.0% |
| 0.00125 | 3.0% | 0.00300 | 7.2% |
| 0.00150 | 3.6% | 0.00350 | 8.4% |
| 0.00175 | 4.2% | 0.00400 | 9.6% |
| 0.00200 | 4.8% | 0.00450 | 10.8% |
Dealers sometimes mark up the money factor above the lender's base rate. Ask for the "buy rate" and compare quotes from several dealers.
Frequently asked questions
How is a car lease payment calculated?
Monthly payment = depreciation fee + finance fee, plus tax. Depreciation fee = (adjusted cap cost − residual value) ÷ term. Finance fee = (adjusted cap cost + residual value) × money factor. Most US states then add sales tax to each payment.
What is a money factor?
The money factor is the lease's interest rate in decimal form. Multiply it by 2,400 to get the approximate APR: a money factor of 0.00250 is about 6% APR. To convert APR to money factor, divide by 2,400.
What is the residual value?
It is the leasing company's estimate of the car's value at the end of the lease, set as a percent of MSRP. A higher residual means less depreciation to pay, so a lower monthly payment. It is also usually the price to buy the car at lease end.
Should I put money down on a lease?
A down payment lowers the monthly payment but not the total cost much, and if the car is stolen or totaled early, that money is usually lost. Many buyers keep the down payment small and negotiate the price instead.
What is the adjusted capitalized cost?
It is the amount being financed: the negotiated price plus fees rolled into the lease, minus the down payment, rebates and trade-in equity. Negotiating a lower price reduces both the depreciation and finance fees.
Why does the dealer's quote differ from this result?
Dealers may add registration, title, documentation, acquisition or disposition fees, and some states tax the full vehicle price or the down payment instead of each payment. Ask for an itemized lease worksheet and compare it line by line.