Auto Lease Calculator
This auto lease calculator estimates your monthly car-lease payment by separating it into the two charges every lease contains: depreciation (paying for the value the car loses while you drive it) and a finance charge based on the money factor. You enter the sticker price, your negotiated price, the residual percentage, the money factor, the term, and any cash down, and it returns the monthly payment plus the total depreciation and finance cost over the lease. Lowering the negotiated price or making a down payment reduces depreciation, while the money factor drives the lease equivalent of interest.
Formula
Payment = (Cap − Res)/N + (Cap + Res)·MF
- Cap
- Adjusted capitalized cost = negotiated price − down payment
- Res
- Residual value = MSRP × residual% ÷ 100
- N
- Lease term in months
- MF
- Money factor (≈ APR ÷ 2400)
How it works
- Enter the MSRP and your negotiated (capitalized) price, then subtract any down payment to get the adjusted price the lease finances.
- Set the residual percentage (the share of MSRP the car is worth at lease-end) to find the residual value; depreciation per month is the adjusted price minus residual, divided by the term in months.
- The finance charge is (adjusted price + residual) times the money factor each month. Adding depreciation and finance charge gives the monthly payment, and the tool also totals each component over the lease plus the down payment.
Worked example
MSRP $40,000, negotiated $37,000, 55% residual, money factor 0.0025, 36-month term, $3,000 down.
- Residual value = 40,000 × 55% = $22,000; adjusted cap cost = 37,000 − 3,000 = $34,000.
- Depreciation = (34,000 − 22,000) ÷ 36 = $333.33/mo; finance charge = (34,000 + 22,000) × 0.0025 = $140/mo.
- Monthly payment = 333.33 + 140 = $473.33; total cost = 473.33 × 36 + 3,000 = $20,040.
The monthly lease payment is about $473.33, with roughly $12,000 going to depreciation and $5,040 to finance charges over 36 months, and a total lease cost near $20,040 including the down payment.
Frequently asked questions
- What is a money factor and how does it relate to APR?
- The money factor is the lease equivalent of an interest rate, expressed as a small decimal. Multiply it by 2,400 to approximate the annual percentage rate, so a 0.0025 money factor is roughly a 6% APR.
- Why does a higher residual value lower my payment?
- You only pay for the value the car loses during the lease. A higher residual means the car is expected to be worth more at lease-end, so the depreciation portion of each payment is smaller, even though the finance charge rises slightly.
- Does this include taxes, fees, or mileage penalties?
- No. The estimate covers depreciation and finance charges only. Sales tax, acquisition and disposition fees, registration, and any excess-mileage or wear charges at lease-end are not included and vary by state and contract.