Car Lease Payment Calculator
See how a lease payment is actually built — depreciation plus a finance charge — and what your money factor means as an APR.
Example: with MSRP (sticker price) $38,000 · Negotiated price (cap cost) $35,000 · Residual value 58 % of MSRP · Money factor 0.0020 → Monthly lease payment: $441.47.
- Depreciation portion$304.44
- Finance (rent) charge$110.08
- Residual value$22,040
Computed by the calculator below using its default values. Change any input to see your own numbers.
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Learn moreDecoding the lease
A lease payment is two parts: depreciation (the value the car loses while you drive it) and the finance charge (interest on the money the leasing company tied up). A higher residual and a lower money factor both shrink the payment.
How it’s calculated & sources
Depreciation = (adjusted cap cost − residual) ÷ term. Finance charge = (adjusted cap cost + residual) × money factor. Payment = (depreciation + finance) × (1 + sales tax), or before-tax if your state taxes the price upfront instead. Adjusted cap cost = price + acquisition fee − total cap cost reduction (down payment + trade-in + rebates). You can enter an APR instead of a money factor (converted as APR ÷ 2400), and a residual in dollars instead of % of MSRP. Total cost of lease = all monthly payments + amount due at signing + disposition fee.
Benchmark: money factor × 2400 = the equivalent APR — the quick way to spot an expensive lease.
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Frequently asked questions
What’s a good money factor?
Convert it: multiply by 2400. Anything under your credit-tier’s typical loan APR is competitive. 0.0020 ≈ 4.8%.
Should I put money down on a lease?
Often no — a large down payment is lost if the car is totaled early. Many advisors prefer little or nothing down and a slightly higher payment.
What are acquisition and disposition fees?
The acquisition fee is charged by the leasing company to open the lease (often rolled into the cap cost); the disposition fee is charged at lease-end if you don’t buy or re-lease the car. Both are set by the leasing company, not negotiable.
Is sales tax charged upfront or monthly?
It depends on your state. Most states tax each monthly payment; a few tax the full price upfront (or the cap cost reduction) at signing. Check your state’s rule and switch the sales tax method accordingly.