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Car Lease Payment Calculator

Estimate a monthly auto lease payment from the negotiated price, down payment, trade-in, residual value, money factor, and lease term.

Monthly lease payment
$393.33
— depreciation portion
$333.33
— finance (rent charge) portion
$60.00
Total of lease payments
$14,160.00
Approximate equivalent APR
3%

How it works

A lease payment has two parts. The depreciation fee spreads the vehicle's expected drop in value — from the adjusted capitalized cost (negotiated price minus down payment and trade-in) down to the residual value the leasing company sets — evenly across the term: (adjusted cap cost − residual) ÷ term. The finance fee is a lease-specific stand-in for interest: (adjusted cap cost + residual) × money factor, where the money factor is a small decimal quoted on the lease contract rather than an annual rate.

Adding the two gives the monthly payment. Multiplying the money factor by 2400 (12 months × 100 × 2) converts it to an approximate equivalent APR, the standard rule-of-thumb dealers and lease contracts use to compare a lease's financing cost to a loan's interest rate.

This does not add sales tax, since whether and how a lease is taxed — on every monthly payment, upfront, or not at all — varies by jurisdiction; add your local rate to the monthly payment yourself if it applies to you.

FAQ

Where do I find my money factor?

It's on the lease worksheet or contract the dealer or leasing company gives you — it isn't something this calculator can look up, since it depends on your credit, the specific deal, and current financing terms. As a sanity check, multiplying it by 2400 gives a rough equivalent APR you can compare against other financing offers.

Why does a smaller residual value mean a higher payment?

The residual value is how much of the vehicle's cost you're NOT paying for during the lease — a lower residual means a bigger gap between the cap cost and the residual, so the depreciation fee (that gap divided by the term) is larger. A higher residual (common on vehicles that hold their value well) lowers the monthly payment for the same price and term.

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