Car Lease Calculator

How to Use the Car Lease Calculator

1. Enter the negotiated vehicle price or MSRP that should be used as the lease value basis.
2. Enter the residual value as a percentage or dollar amount, then enter the lease money factor from the dealer quote.
3. Enter the lease term in months, down payment, optional sales tax rate, and any fees you plan to capitalize into the lease.
4. Review the estimated monthly payment, depreciation charge, finance charge, tax amount, residual amount, and total lease cost.

Car Lease Payment Formula

Adjusted capitalized cost is the vehicle price plus capitalized fees minus any down payment or capital cost reduction. The residual value is the expected value of the vehicle at the end of the lease.

Lease Input Notes

Frequently Asked Questions

What is a money factor?

A money factor is the lease finance rate used by lenders. To estimate an APR equivalent, multiply the money factor by 2400. For example, a money factor of 0.00185 is roughly equal to 4.44% APR.

How is a car lease payment calculated?

A car lease payment is usually the depreciation charge plus the finance charge, plus any monthly tax. Depreciation is the adjusted capitalized cost minus the residual value, divided by the lease term. The finance charge is the adjusted capitalized cost plus the residual value, multiplied by the money factor.

Should residual value be entered as a percent or a dollar amount?

Use percent when your lease quote lists residual as a percentage of MSRP, such as 58%. Use amount when the quote gives the exact residual dollar value. The calculator supports both formats.

Does a larger down payment always make a lease better?

A larger down payment lowers the monthly payment, but it also increases cash due at signing. Many shoppers compare leases with lower down payments because a lease vehicle can be lost or totaled before the prepaid amount is fully used.