Car lease calculator
Enter the negotiated price, the MSRP, the residual percentage and the money factor (or an APR) from a lease offer. The calculator shows the monthly payment the way lessors build it: a depreciation fee, a finance fee and tax, together with the capitalized cost, the residual value and everything you pay over the term.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the MSRP and the negotiated price of the car.
- Add the down payment and any fees rolled into the lease (acquisition fee and similar).
- Enter the term in months and the residual value as a percentage of the MSRP.
- Choose whether your offer gives a money factor or an APR and enter it.
- Optionally enter a tax rate charged on the monthly payment.
How a lease payment is built
- Capitalized cost = price + fees − down payment
- Residual value = MSRP × residual %
- Depreciation fee = (capitalized cost − residual value) ÷ months
- Finance fee = (capitalized cost + residual value) × money factor
- Money factor = APR ÷ 2400
- Payment = (depreciation fee + finance fee) × (1 + tax rate)
You pay for the part of the car’s value you use up, plus a finance charge on the money tied up in the car.
Worked example
MSRP 36,000, price 34,000, down payment 3,000, no fees, 36 months, 55% residual, money factor 0.0025, no tax.
- Capitalized cost = 34,000 − 3,000 = 31,000.00; residual = 36,000 × 0.55 = 19,800.00.
- Depreciation fee = 11,200 ÷ 36 = 311.11.
- Finance fee = (31,000 + 19,800) × 0.0025 = 127.00.
- Monthly payment = 438.11; equivalent APR 6%.
- Total paid = 438.11 × 36 + 3,000 = 18,772.00.
Tips
- Negotiate the price, not the payment: every 1,000 off the price saves about 1,000 ÷ months plus some finance fee.
- A higher residual means a lower payment, because you pay for less depreciation.
- Ask for the money factor in writing and multiply by 2400 to compare it with loan rates.
- Mileage limits, wear charges and disposition fees at the end are not part of this payment.
Frequently asked questions
How is a lease payment calculated?
Payment = depreciation fee + finance fee (+ tax). Depreciation fee = (capitalized cost − residual value) ÷ months. Finance fee = (capitalized cost + residual value) × money factor. Tax, where it applies to lease payments, is a percentage of those two.
What is a money factor and how do I convert it to APR?
The money factor is how lessors express the interest rate of a lease. Multiply it by 2400 to get an approximate APR: a money factor of 0.0025 is about 6%. To go back, divide the APR by 2400.
Is the residual based on the MSRP or the price I paid?
Usually on the MSRP. That is why the calculator asks for both: the residual uses the MSRP, the capitalized cost uses the negotiated price plus fees minus the down payment.
Does a bigger down payment save money?
It lowers the monthly payment and a little of the finance fee, but the money is paid upfront. If the car is written off early, a large down payment is often lost, which is why many people keep it small.
Which tax rate should I enter?
Whatever rate applies to lease payments where you live, or 0 if the tax is charged differently or included in the price. The calculator only multiplies the payment by the rate you enter.