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Auto Lease Calculator

Lease payment from cap cost, residual and money factor.

Calculators Reviews Free · no sign-up
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What the payment is made of

Depreciation—

Finance charge—

Money factorEquivalent APRMonthly payment

Monthly payment

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Depreciation portion—
Finance charge—
Monthly tax—
Equivalent APR—
Capitalized cost—
Residual value—
Due at signing—
Total cost of the lease—

Quick Tool Overview

The Auto Lease Calculator builds a lease payment from its real components: depreciation between capitalized cost and residual, plus a finance charge from the money factor. It converts that money factor into an APR, which is what dealers avoid quoting.

What it does
Calculates a car lease payment and its two components
You give it
Capitalized cost, residual value, money factor and term
You get back
Depreciation, finance charge, tax and total monthly payment
Best for
Understanding and negotiating a lease quote
Calculators Free, unlimited use No sign-up Runs in your browser

About the Auto Lease Calculator

A lease payment has two parts: depreciation, which is the value the car loses while you have it, and a finance charge on the money tied up in it. Enter the capitalized cost, the residual value, the money factor and the term to see both components and the total.

The money factor is where leases hide their cost. It is a small decimal rather than a percentage, and multiplying it by 2400 converts it to an approximate APR — a factor of 0.00125 is about three percent. Dealers quote it in the obscure form precisely because a rate is easier to shop than a decimal. The other lever is the capitalized cost, which is negotiable exactly like a purchase price, and reducing it lowers both halves of the payment at once.

Key features of the Auto Lease Calculator

Money factor converted to APR

Multiply by 2400 and a 0.00125 factor becomes roughly three percent — a rate you can actually shop.

Depreciation and finance split

The two halves of the payment shown separately, so you can see which one the negotiation should target.

Cap cost is negotiable

It is the price, and reducing it lowers both halves of the payment at once.

Residual sensitivity

A higher residual means less depreciation to pay for, which is why some cars lease far better than others.

Down payment warning

Money down on a lease is prepaid depreciation you may not recover if the car is written off.

How to use the Auto Lease Calculator

  1. 1

    Enter the capitalized cost

    The negotiated price of the vehicle, less any down payment or trade-in.

  2. 2

    Enter the residual value

    What the car is projected to be worth at lease end, usually a percentage of MSRP set by the lender.

  3. 3

    Enter the money factor

    The small decimal the dealer quotes. Multiply by 2400 to see the equivalent APR.

  4. 4

    Read the split

    Depreciation and finance charge shown separately, plus tax and the total monthly payment.

Frequently asked questions

Depreciation is the capitalized cost minus the residual, divided by the number of months. The finance charge is the capitalized cost plus the residual, multiplied by the money factor. Add both, then add tax.

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