Car Lease Calculator: Monthly Payment From Price, Residual and Money Factor

1. Enter the negotiated price (cap cost) - the selling price you agree with the dealer, not the sticker price - plus any down payment, trade-in and rebates, which are cap cost reductions.
2. Enter the residual value (a dollar amount, or switch the toggle to a percent of MSRP), the money factor (or switch to enter an APR), the lease term in months and an optional sales tax rate.
3. Read your monthly lease payment, then see how it splits into the depreciation portion and the rent charge, with the equivalent APR.

What each result tells you:

A car lease calculator works out your monthly lease payment from the price, the residual value, the money factor and the term. A lease is not a loan: you pay for the part of the car you use up - its depreciation - plus a finance charge on the money the leasing company has tied up. The calculator shows both parts so you can see where your payment goes.

It helps you check a dealer quote, compare two lease deals, and see how a lower price, a higher residual or a smaller money factor changes the payment. It estimates a standard closed-end lease. It does not set your terms, and it is not a lease offer. To weigh leasing against buying with a loan, compare the payment here with the one from the auto loan calculator.

A lease payment has two parts. The depreciation fee spreads the value the car loses over the term. The rent charge is the finance cost, worked out from the money factor on the sum of the adjusted cap cost and the residual.

1. Adjusted cap cost = negotiated price - down payment - trade-in - rebates.
2. Depreciation fee = (adjusted cap - residual) divided by the number of months.
3. Rent charge = (adjusted cap + residual) multiplied by the money factor.
4. Add the two for the base payment, then add sales tax on the monthly figure if your state taxes it that way.

The money factor is just the interest rate in another form: money factor x 2400 = approximate APR, so 0.00250 is about 6%. Switch the toggle to enter an APR instead, and the tool divides by 2400 to get the money factor.

Suppose the adjusted cap cost is 33,000, the residual value is 21,000, the money factor is 0.00250 and the term is 36 months:

Meaning: you pay about 468 a month before tax, or 501 with 7% tax. Of the base payment, 333 is depreciation and 135 is the rent charge. A higher residual or a lower money factor would cut the payment. These figures use the numbers you enter; they are not a quoted deal.

A few inputs drive almost everything in a lease payment.

Negotiated Price (Cap Cost)

This is negotiable, just like a purchase. A lower cap cost cuts both the depreciation fee and the rent charge, because both depend on it. Agree the price before you discuss monthly payments.

Residual Value

A higher residual means the car loses less value on paper, so the depreciation fee falls. The leasing company sets the residual, but comparing cars with strong residuals is one of the best ways to lease cheaply.

Money Factor

This is the lease interest rate. A smaller money factor lowers the rent charge. Multiply it by 2400 to compare it with an APR, and shop it the way you would a loan rate.

Cap Cost Reductions

A down payment, trade-in or rebate lowers the adjusted cap cost, which cuts the payment. But money put down on a lease is gone if the car is totaled early, so many drivers keep the down payment small.

A lease payment is usually lower than a loan payment on the same car, because you only pay for the depreciation and the finance charge, not the whole price. But at the end of a lease you own nothing, while a loan leaves you with the car.

Tax rules differ too. If the vehicle is used for business, part of a lease payment may be deductible; see the car loan interest deduction calculator for the loan-interest side. Check how any payment fits your budget with the debt-to-income ratio calculator.

Before You Visit the Dealer

Work out a target payment from a fair cap cost, the published residual and a reasonable money factor, so a quote that is much higher stands out at once.

Checking a Quote

Dealers quote a monthly payment, not the parts behind it. Enter the numbers here to see the depreciation and rent charges and the equivalent APR, and to catch a marked-up money factor.

Comparing Two Cars

Two cars at the same price can lease very differently if their residuals or money factors differ. Run each to compare the real monthly cost, not just the sticker price. Remember sales tax, which you can estimate with the sales tax calculator.

1. Negotiating the Payment, Not the Price

Focus on the cap cost first. A dealer can hit any monthly payment by stretching the term or hiding a high money factor, so agree the price before payments.

2. Ignoring the Money Factor

A small-looking number like 0.00300 is about 7.2% APR. Always multiply by 2400 and compare it with loan rates; a marked-up money factor is pure profit for the dealer.

3. Putting Too Much Money Down

A big down payment lowers the payment but is lost if the car is stolen or totaled early, because insurance pays the car value, not your prepaid depreciation.

4. Underestimating Mileage

Leases cap annual mileage, and excess miles cost real money at the end. Pick a mileage limit that matches how you actually drive.

5. Forgetting Fees and Tax

Acquisition fees, disposition fees and sales tax are not in the base formula. Add tax here and ask the dealer for every fee before you sign.

The math matches the standard lease formula - depreciation fee plus rent charge from the money factor - so differences from a dealer quote usually come from fees and taxes this base calculation leaves out.

It is the depreciation fee plus the rent charge. Depreciation = (adjusted cap cost - residual) / term, and rent = (adjusted cap cost + residual) x the money factor. Add sales tax on the monthly payment if your state taxes it that way.

The money factor is the lease interest rate written as a small decimal. Multiply it by 2400 to get the approximate APR, so a money factor of 0.00250 is about 6%. You can enter an APR here instead and the tool divides by 2400.

The residual is the car value the leasing company predicts for the end of the lease, often given as a percent of MSRP. A higher residual means less depreciation, which lowers your payment. You can enter it as a dollar amount or a percent of MSRP.

The capitalized cost is the agreed selling price of the car in a lease. Like a purchase price, it is negotiable. Down payments, trade-ins and rebates are cap cost reductions that lower it to the adjusted cap cost.

Yes. A down payment, trade-in or rebate reduces the adjusted cap cost, which lowers both the depreciation fee and the rent charge. But money put down is lost if the car is totaled early, so many drivers keep it small.

The leasing company finances both the part of the car you use up and the residual it still owns during the lease. Multiplying the sum of the adjusted cap cost and the residual by the money factor approximates the average interest across the term.

Most US states tax each monthly payment, so this tool multiplies the base payment by (1 + tax rate). Some states instead tax the full price or the cap cost up front; enter 0 here if your state does that and handle the up-front tax separately.

The monthly payment is usually lower because you only pay for depreciation and the finance charge, not the whole price. But you own nothing at the end, and mileage limits apply. Compare the full picture before deciding.

Common terms are 24, 36, 39 and 48 months. A shorter term keeps the car under warranty and matches the residual more closely; a longer term lowers the payment but may run past the warranty.

No. The calculation runs in your browser and nothing you enter is sent to our servers. Anything you choose to Save stays in this browser only.

• Vehicle leasing basics (US FTC, consumer guide to leasing a car).
• Keys to Vehicle Leasing (money factor, residual) (US Federal Reserve, official leasing guide).
• Annual Percentage Rate (APR) (US SEC Investor.gov).