Car Lease Payment Calculator
Estimate your monthly car lease cost including depreciation and rent charge.
Estimated Monthly Payment:
$0.00
Monthly Depreciation:
$0.00
Monthly Rent Charge:
$0.00
Total Lease Cost:
$0.00
Residual Value (Buyout):
$0.00
How to Calculate Your Car Lease Payment
Understanding how car lease payments are calculated can save you thousands of dollars at the dealership. Unlike a standard car loan, a lease focuses on the vehicle's depreciation during the time you drive it, rather than the total purchase price.
The Core Components of a Lease
To use our calculator effectively, you should understand these four key metrics:
- Gross Capitalized Cost: This is the price of the car plus any added fees. Negotiating this price is just as important as negotiating a purchase price.
- Residual Value: This is the predicted value of the car at the end of the lease. A higher residual value lowers your monthly payment because you are paying for less depreciation.
- Money Factor: This represents the interest rate. To convert the Money Factor to a standard APR, multiply it by 2400 (e.g., 0.00125 * 2400 = 3% APR).
- Lease Term: The duration of the lease, typically 24, 36, or 48 months.
The Formula We Use
The monthly payment consists of two main parts: the Depreciation Fee and the Finance Fee (Rent Charge).
1. Adjusted Cap Cost = (Price – Down Payment – Trade-in)
2. Monthly Depreciation = (Adjusted Cap Cost – Residual Value) / Term
3. Monthly Rent Charge = (Adjusted Cap Cost + Residual Value) * Money Factor
4. Total Monthly Payment = Depreciation + Rent Charge
Example Calculation
If you lease a car priced at $30,000 with a 60% residual value ($18,000) for 36 months, and put $2,000 down:
- Adjusted Cap Cost: $28,000
- Monthly Depreciation: ($28,000 – $18,000) / 36 = $277.78
- Rent Charge (at 0.0015 MF): ($28,000 + $18,000) * 0.0015 = $69.00
- Total Payment: $346.78 (plus taxes)