Car Lease Calculator
Enter the price, residual value, term and money factor to calculate a monthly lease payment.
What this tool does
A lease payment has two parts: depreciation ((net cap cost − residual) ÷ months) and a finance charge ((net cap cost + residual) × money factor). For a 30,000 car with a 60% residual, 36 months and a money factor of 0.0025, that is 333.33 + 120 = 453.33 a month, equal to about 6% APR.
Splits a lease payment into the depreciation part and the finance part.
Shows the residual value, the APR equivalent of the money factor and the total of payments.
How to use it
- Enter the vehicle price and any down payment.
- Enter the residual value as a percentage of the price.
- Enter the lease term in months and the money factor.
- Read the monthly payment and its parts.
Why use this calculator
Calculates a car lease payment from price, down payment, residual value, term and money factor, split into depreciation and finance charge. Dealers quote lease deals with terms like money factor and residual that are hard to compare with a loan. Breaking the payment into its parts shows what you are paying for and lets you check a quote.
Why we built it
We built the car lease calculator to split a payment into its depreciation and finance parts and to translate the money factor into an APR. Compare it with the auto loan calculator and run the cost of the miles through the fuel cost calculator.
If your task goes further, try the Present Value Calculator.
Who this tool is for
- Drivers weighing a lease against buying
- People checking a dealer's lease quote
- Students learning what a money factor is
When to use it
- Checking a dealer's lease quote.
- Comparing leasing with buying.
- Negotiating the capitalised cost.
- Understanding what money factor means.
How it works
Depreciation = (net capitalised cost − residual) ÷ term. Finance charge = (net capitalised cost + residual) × money factor. Monthly payment is the sum, before tax and fees. To convert money factor to an approximate APR, multiply by 2,400.
Example: price 30,000, nothing down, residual 60% (18,000), 36 months, money factor 0.0025. Depreciation 12,000 ÷ 36 = 333.33. Finance 48,000 × 0.0025 = 120. Total 453.33.
Sales tax, acquisition fees, mileage allowances and end-of-lease charges are not included.
A worked example
These are the values the calculator opens with, so you can see exactly what it does with them. Change any value on the page and the result updates; the figures below come from the same calculation.
| Input | Value |
|---|---|
| Currency symbol | $ (dollar) |
| Vehicle price | 30000 |
| Down payment or trade-in | 0 |
| Residual value | 60 |
| Lease term | 36 |
| Money factor | 0.0025 |
With those inputs, the calculator returns:
- Monthly lease payment: $453.33
- Depreciation part: $333.33
- Finance (rent) part: $120.00
- Residual value: $18,000.00
- Approximate APR: 6.00%
- Total of payments: $16,320.00
What you give it, and what you get back
| Item | Details |
|---|---|
| Price and down payment | Vehicle price and any cash down or trade-in. |
| Residual % | Expected value at the end of the lease as a share of the price. |
| Term and money factor | Months, and the finance factor (≈ APR ÷ 2,400). |
| Output | Monthly payment, depreciation, finance charge, APR, total of payments. |
Issues you may run into
| What you see | Why it happens | What to do |
|---|---|---|
| My quote is higher | Tax, fees or a different capitalised cost are included. | Ask for a full breakdown. |
| Residual is higher than the net cap cost | The inputs are inconsistent. | Check the price and the residual percentage. |
| I only know the APR | Money factor = APR ÷ 2,400. | Divide the APR by 2,400 and enter it. |
Assumptions and limitations
- Before tax and fees.
- Mileage and wear charges are not included.
- Dealer-specific adjustments are not modelled.
Frequently asked questions
What is a money factor?
The lease finance rate expressed as a small decimal. Multiply by 2,400 for an approximate APR.
What is residual value?
What the car is expected to be worth at the end of the lease, usually a percentage of its price.
How is a lease payment calculated?
Depreciation per month plus a finance charge on the average amount financed.
Is leasing cheaper than buying?
Payments are often lower, but you do not own the car at the end. It depends on your use.
Does it include tax?
No. Sales tax and fees vary and are extra.
Is my information sent anywhere?
No. The calculation runs in your browser and your figures never leave the page.
Sources and accuracy
Monthly lease payments follow the standard auto lease formula in which the capitalized cost less the residual value is divided by the term and added to the money factor times the sum of the capitalized cost and residual value. This is the structure described in United States consumer vehicle leasing guidance.
Figures last checked against the source on . Standards and rates can change — if you are relying on this for something that matters, confirm against the source above. Think a figure is wrong or out of date? Send a correction.