Car Lease Monthly Payment Calculator
Estimate your lease payments based on MSRP, residual value, and money factor.
Gross Capitalized Cost:
$0.00
Residual Value:
$0.00
Monthly Depreciation:
$0.00
Monthly Rent Charge:
$0.00
Total Monthly Payment:
$0.00
How to Calculate Your Car Lease Payment
Lease calculations are more complex than standard auto loans because you are only paying for the vehicle's depreciation during the time you drive it, plus interest and taxes. To use this calculator effectively, you need to understand four key components:
- Gross Capitalized Cost: This is the "sale price" of the car plus any added fees. Negotiating this number down is the best way to lower your payment.
- Residual Value: This is what the leasing company predicts the car will be worth at the end of your lease. It is expressed as a percentage of the original MSRP. A higher residual value lowers your monthly payment.
- Money Factor: This represents the interest rate. To convert a money factor to a standard APR, multiply it by 2400 (e.g., 0.0025 x 2400 = 6% APR).
- Lease Term: The duration of the lease, typically 24, 36, or 48 months.
Example Calculation
Suppose you are looking at a luxury SUV with an MSRP of $50,000. You negotiate the price to $47,000 and put $3,000 down. The bank sets a 36-month residual at 60% ($30,000) and a money factor of 0.002.
1. Monthly Depreciation: ($44,000 adjusted cap cost – $30,000 residual) / 36 months = $388.89.
2. Monthly Rent Charge: ($44,000 + $30,000) * 0.002 = $148.00.
3. Base Payment: $388.89 + $148.00 = $536.89.
Pro Tips for Better Lease Deals
Never tell a dealer what monthly payment you want. Instead, negotiate the Capitalized Cost first. Once the price is set, ask for the Money Factor and Residual Value. Ensure the money factor isn't "marked up" by the dealership. High-residual vehicles (like certain trucks and Japanese SUVs) often make for much better lease candidates than vehicles that depreciate quickly.