Auto Lease Calculator
Estimate a monthly car lease payment from the price, residual value and money factor.
How to use the Auto Lease Calculator
- Enter the negotiated price of the car.
- Enter the residual value as a percentage of the price.
- Enter the money factor and lease term in months.
- Add any down payment and sales tax to see the monthly payment.
Payment = (cap − residual)/term + (cap + residual) × money factor, cap = price − down
About the Auto Lease Calculator
Leasing a car means paying for the value it loses while you drive it, not the whole price — which is why lease payments are lower than loan payments on the same vehicle. This calculator builds the payment from its two real parts: the depreciation fee, which spreads the drop from price to residual value across the term, and the finance charge (the "rent"), which the money factor applies to the price and residual combined. It then adds any tax to show the monthly figure and breaks each piece out.
The money factor is the part dealers keep opaque. It is simply the lease interest rate in disguise — multiply it by 2400 to get the equivalent APR, so 0.0025 is about 6%. Knowing that lets you judge whether a lease rate is competitive, and small changes to it or to the residual value move the payment more than the headline price does.
These are the core mechanics; a real lease contract also carries acquisition and disposition fees, mileage limits with per-mile penalties, and tax rules that differ by region. Treat this as a solid estimate for comparing offers. To compare against buying with a loan, use the car loan calculator or the car affordability calculator.
Frequently asked questions
What is a money factor?
It is the lease interest rate expressed as a small decimal. Multiply it by 2400 to get the approximate APR — a money factor of 0.0025 is about 6%. A lower money factor means a cheaper lease.
What is residual value?
It is what the car is predicted to be worth at the end of the lease, set by the lender as a percentage of the price. A higher residual means less depreciation to pay for, and a lower monthly payment.
Does this include all lease fees?
No. It covers depreciation, finance charge and tax. Real leases also add acquisition and disposition fees and mileage penalties, so your contract total may be higher. Use it to compare offers.