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Car Lease Payment Calculator

24 Months 36 Months 48 Months 60 Months
Or enter APR / 2400

Estimated Monthly Payment:

$0.00

Monthly Depreciation: $0.00

Monthly Finance (Rent) Fee: $0.00

Residual Value Amount: $0.00

function calculateLease() { var vPrice = parseFloat(document.getElementById('vehiclePrice').value); var dPayment = parseFloat(document.getElementById('downPayment').value); var term = parseFloat(document.getElementById('leaseTerm').value); var mFactor = parseFloat(document.getElementById('moneyFactor').value); var rPercent = parseFloat(document.getElementById('residualValue').value); if (isNaN(vPrice) || isNaN(dPayment) || isNaN(mFactor) || isNaN(rPercent)) { alert("Please enter valid numeric values"); return; } // 1. Calculate Gross Cap Cost var adjCapCost = vPrice – dPayment; // 2. Calculate Residual Value var residualAmount = vPrice * (rPercent / 100); // 3. Calculate Depreciation Fee // (Adjusted Cap Cost – Residual Value) / Term var monthlyDepreciation = (adjCapCost – residualAmount) / term; // 4. Calculate Finance Fee (Rent Charge) // (Adjusted Cap Cost + Residual Value) * Money Factor var monthlyFinance = (adjCapCost + residualAmount) * mFactor; // 5. Total Payment var totalPayment = monthlyDepreciation + monthlyFinance; // Display Results document.getElementById('leaseResult').style.display = 'block'; document.getElementById('monthlyTotal').innerText = '$' + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationPart').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('financePart').innerText = '$' + monthlyFinance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('residualAmt').innerText = '$' + residualAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); }

Understanding Your Car Lease Payment

Leasing a vehicle can be more complex than a traditional auto loan. While a loan is based on the total purchase price, a lease is essentially paying for the depreciation of the car during the time you drive it, plus interest and fees. Use our calculator above to estimate your costs before heading to the dealership.

How a Lease Payment is Calculated

Most car lease payments are comprised of two primary components: the Depreciation Fee and the Rent Charge.

1. The Depreciation Fee

This is the largest part of your monthly payment. It covers the loss in the vehicle's value over the lease term. It is calculated by taking the Adjusted Capitalized Cost (the price you negotiated minus your down payment) and subtracting the Residual Value (what the car is expected to be worth at the end of the lease), then dividing that number by the lease term.

2. The Rent Charge (Finance Fee)

This is effectively the interest you pay for the privilege of leasing. Instead of an APR, leasing companies use a Money Factor. To find the equivalent interest rate, you can multiply the Money Factor by 2,400. For example, a Money Factor of 0.00125 is equal to a 3% APR.

Key Terms to Know

  • Gross Capitalized Cost: The agreed-upon price of the vehicle plus any added fees or taxes.
  • Capitalized Cost Reduction: This is your down payment, trade-in credit, or manufacturer rebates that reduce the amount being financed.
  • Residual Value: An estimate of what the car will be worth at the end of the lease. This is usually expressed as a percentage of the MSRP.
  • Money Factor: The interest rate on a lease. Always ask for this number specifically to ensure you are getting a fair deal.

Example Lease Calculation

Imagine you are leasing a car with an MSRP of $40,000 for 36 months.

  • Residual Value: 60% ($24,000)
  • Down Payment: $4,000
  • Money Factor: 0.0015 (3.6% APR)

In this scenario, your Adjusted Cap Cost is $36,000 ($40,000 – $4,000). The total depreciation is $12,000 ($36,000 – $24,000). Your monthly depreciation fee would be $333.33. Your monthly rent charge would be $90.00 ($60,000 * 0.0015). Your total estimated monthly payment would be $423.33 plus local sales tax.

Tips for Lowering Your Lease Payment

To get the best possible lease deal, focus on three things: negotiating a lower sales price (Gross Cap Cost), finding vehicles with high residual values (they depreciate less), and ensuring you have a good credit score to qualify for the lowest Money Factor.

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