Car financing

Car Lease Calculator

Estimate a monthly car lease payment from negotiated price, cap cost reduction, money factor, residual value, tax and fees. See due at signing and total cost with a buyout.

Calculations run locally without sending your input values

Vehicle and cap cost

Negotiated vehicle price$MSRP used for residual$Cap cost reduction$Trade-in credit or rebateoptional$Fees rolled into lease$Other upfront fees$

Lease terms

Lease termmoResidual value%Money factorfor example 0.002Tax on monthly payment%Purchase option fee$

Monthly lease payment breakdown

Depreciation charge

$347.08

Finance charge

$125.79

≈ 4.8% APR

Estimated tax

$37.83

All monthly payments

$18,385

How a car lease payment is calculated

A standard lease payment has two main parts: depreciation from adjusted cap cost to residual value, and a rent or finance charge based on the money factor. The calculator then adds the entered tax rate to the base payment.

Monthly depreciation = (adjusted cap cost − residual value) ÷ term

Monthly finance charge = (adjusted cap cost + residual value) × money factor

Money factor and equivalent APR

Money factor is the financing rate used in many U.S. leases. Multiplying it by 2,400 gives an approximate APR for comparison. A money factor of 0.002 is roughly equivalent to 4.8% APR.

Lease vs. buy comparison

Compare the same time horizon and expected ownership outcome. A lease may lower the payment because you finance depreciation to a residual value, but buying can leave you with an owned vehicle and no mileage or wear charges after payoff.

What to verify on a lease quote

Confirm MSRP-based residual value, negotiated selling price, acquisition and disposition fees, mileage allowance, excess-wear rules and whether the quoted payment already includes local tax. Tax methods vary by location.