Car Lease Calculator
Estimate a monthly car lease payment from price, residual value and money factor.
About the Car Lease Calculator
Enter the negotiated price, down payment, residual value, MSRP, money factor, term and sales tax. The calculator gives the monthly payment, its depreciation and finance parts, the equivalent APR and the total cost.
A lease payment covers the car's depreciation over the term (capitalised cost minus residual value, spread over the months) plus a finance charge of (cap cost + residual) × money factor. The money factor is the lease's interest rate in disguise: multiply by 2,400 for an approximate APR. Many US states tax the monthly payment.
The formula
Payment = (cap cost − residual) ÷ months + (cap cost + residual) × money factor
Worked example
A 40,000 car (MSRP 42,000), 3,000 down, 58% residual, money factor 0.0025, 36 months, 7% tax
- Depreciation: (37,000 − 24,360) ÷ 36 = 351.11
- Finance charge: (37,000 + 24,360) × 0.0025 = 153.40
- With tax: 539.83 a month; equivalent APR 6%
Questions people ask
What's a good residual?
Higher residuals mean lower payments; 50–60% after 3 years is common.
Can I negotiate a lease?
Yes: the price, money factor (dealer markups) and fees.