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Auto Lease Calculator
About the Auto Lease Calculator
Estimate the monthly payment on a car lease from the price, residual value and money factor, and see how much of it is depreciation versus finance charge.
How to use the Auto Lease Calculator
- Enter the Vehicle Price (MSRP), your Down Payment and the Residual Value the car is expected to have at the end of the lease.
- Enter the Money Factor and choose the Term (Months): 24, 36, 48 or 60.
- Press Calculate My Lease Payment.
Formula and method
Depreciation = (Cap cost − Residual) ÷ TermFinance charge = (Cap cost + Residual) × Money factor
Monthly payment = depreciation + finance charge (plus tax where it applies).
A money factor is roughly the APR divided by 2,400.
Worked example
With a $30,000 cap cost, a $18,000 residual, a money factor of 0.0025 (about 6% APR) and 36 months: depreciation is $333.33 and the finance charge is $120, so the payment is about $453 a month before tax.
Tips
- Negotiate the price of the car first, because the lease payment is based on it.
- Check mileage limits and excess mileage fees, which can be expensive.
Frequently Asked Questions
Multiply the money factor by 2,400. A money factor of 0.0025 is about 6% APR.
Monthly payments are usually lower, but you own nothing at the end. Buying tends to cost less over many years.