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.
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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). Adjusted cap cost = price − down payment.
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.
Worked example
A $35,000 car (negotiated) on a $38,000 MSRP with a 58% residual, 0.0020 money factor, 36 months and $2,000 down is roughly $400/month before tax — about a 4.8% APR.
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.