Car Lease Payment Calculator
24 Months
36 Months
48 Months
60 Months
Note: APR / 2400 = Money Factor
Estimated Lease Details
Monthly Payment (Pre-Tax):
$0.00
Total Monthly Payment:
$0.00
Net Capitalized Cost: $0.00
Residual Value: $0.00
Monthly Depreciation: $0.00
Monthly Rent Charge: $0.00
How to Use the Car Lease Payment Calculator
Leasing a car is fundamentally different from buying one. Instead of paying for the entire value of the vehicle, you are paying for the depreciation that occurs during the time you drive it, plus interest (known as the money factor).
Key Leasing Terms Explained
- Gross Capitalized Cost: This is the negotiated price of the car. Just like buying, you should always negotiate the MSRP down.
- Residual Value: This is the estimated value of the car at the end of the lease term. Higher residual values lead to lower monthly payments because you are financing less depreciation.
- Money Factor: This is the lease equivalent of an interest rate. To convert a Money Factor to a standard APR, multiply it by 2,400 (e.g., 0.0015 * 2400 = 3.6% APR).
- Cap Cost Reduction: This includes your down payment, trade-in value, and any manufacturer rebates that reduce the amount you need to finance.
The Mathematical Formula
Our calculator uses the industry-standard formula to ensure accuracy:
- Monthly Depreciation = (Net Cap Cost – Residual Value) / Term
- Monthly Rent Charge = (Net Cap Cost + Residual Value) * Money Factor
- Base Payment = Depreciation + Rent Charge
- Total Payment = Base Payment + Sales Tax
Example Calculation
Imagine you lease a car priced at $35,000 for 36 months. You put $2,000 down. The residual value is 60% ($21,000), and the money factor is 0.0015. The sales tax is 7.5%.
- Net Cap Cost: $35,000 – $2,000 = $33,000
- Monthly Depreciation: ($33,000 – $21,000) / 36 = $333.33
- Monthly Rent Charge: ($33,000 + $21,000) * 0.0015 = $81.00
- Base Payment: $333.33 + $81.00 = $414.33
- Total with Tax: $414.33 * 1.075 = $445.40