Car Lease Calculator
Estimate your monthly lease payments accurately including taxes and money factor.
Estimated Monthly Payment:
$0.00
Base Monthly Depreciation:
$0.00
Monthly Finance Charge:
$0.00
Monthly Sales Tax:
$0.00
Total Cost of Lease:
$0.00
How Car Lease Payments are Calculated
Unlike a traditional car loan where you pay for the entire value of the vehicle, a lease payment only covers the depreciation of the car over the period you use it, plus finance charges and taxes. This calculator breaks down the three core components of your payment:
1. Depreciation Fee
This is the most significant part of your payment. It represents the value the car loses during your lease. It is calculated as:
(Adjusted Capitalized Cost – Residual Value) / Term in Months
2. Rent Charge (Finance Fee)
This is essentially the interest you pay for the leasing company's money. It uses a "Money Factor." To convert a standard APR percentage to a money factor, divide by 2400. The formula is:
(Adjusted Capitalized Cost + Residual Value) × Money Factor
Important Lease Terms to Know
- MSRP: The Manufacturer's Suggested Retail Price.
- Capitalized Cost: The negotiated price of the car. Always try to negotiate this lower!
- Residual Value: The predicted value of the car at the end of the lease. A higher residual value usually means lower monthly payments.
- Money Factor: The interest rate expressed as a small decimal (e.g., 0.0025).
Example Lease Calculation
If you negotiate a car to $30,000 with a 60% residual ($18,000) over 36 months, your depreciation is $12,000 / 36 = $333.33/month. If your money factor is 0.0025, your finance fee is ($30,000 + $18,000) * 0.0025 = $120.00/month. Total base payment = $453.33 + Tax.