Lease Calculator
Calculate monthly lease payments from price, residual value, term, and rate — with depreciation and finance breakdown.
Everyday Uses
Car lease deals decoded
Rebuild the dealer's payment yourself — if their number is higher, something is hidden in the deal.
Money factor translation
Convert the dealer's tiny "0.0025" money factor into the 6% APR it really is — then negotiate it.
Lease vs buy groundwork
Get the true lease cost including depreciation and finance charges before comparing against a purchase.
Residual value shopping
See why cars that hold value lease cheaper — and compare models on payment, not just price.
Frequently Asked Questions
How is a lease payment calculated?
Two parts: depreciation — (net capitalized cost − residual value) ÷ months — plus a finance charge — (net cap cost + residual) × money factor. Example: a $35,000 car with 55% residual over 36 months at 6% APR costs about $394/month for depreciation plus $134 finance charge, before tax. You pay for the value the car loses, plus interest on the money tied up.
What is a money factor?
The leasing industry's way of writing the interest rate: money factor = APR ÷ 2400. A 6% APR is a 0.0025 money factor. Dealers often quote the money factor because it looks tiny — always convert back (× 2400) to see the real rate, and negotiate it like any interest rate.
What is residual value and why does it matter so much?
The predicted value of the car at lease end, set by the leasing company as a percentage of MSRP. You only pay for the value ABOVE the residual, so a car holding 60% of its value costs far less to lease than one holding 45% — which is why some premium brands lease cheaply. Higher residual = lower payment.
What costs does this calculator not include?
Acquisition fees ($500–1,000), disposition fees at return ($300–500), excess mileage charges (commonly $0.15–0.30/mile over the cap), and wear-and-tear charges. Factor them into the total cost when comparing a lease against buying — the advertised payment is never the whole story.