Vehicle Lease Calculator
Calculate your precise monthly lease payment using industry-standard formulas.
Estimated Monthly Payment (Incl. Tax):
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Base Monthly Payment:
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Monthly Depreciation:
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Monthly Rent Charge:
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Residual Value Amount:
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How to Calculate a Vehicle Lease Payment
Unlike a traditional auto loan, where you pay down the entire value of the car plus interest, a lease essentially charges you for the depreciation of the vehicle over a set period, plus a financing fee known as the Rent Charge.
1. The Depreciation Fee
This is the largest part of your payment. It is the difference between the Adjusted Capitalized Cost (what you paid for the car) and the Residual Value (what the car is worth at the end of the lease), divided by the number of months in the term.
Formula: (Adjusted Cap Cost – Residual Value) / Term
2. The Rent Charge
Instead of an interest rate, leasing companies use a Money Factor. To find the monthly rent charge, you add the Adjusted Cap Cost and the Residual Value together and multiply that sum by the Money Factor.
Formula: (Adjusted Cap Cost + Residual Value) × Money Factor
3. Essential Lease Terms Defined
- MSRP: The sticker price of the vehicle.
- Adjusted Capitalized Cost: The negotiated price plus fees (like acquisition fees) minus your "Cap Cost Reductions" (down payment or trade-in).
- Residual Value: A fixed percentage of the original MSRP that determines the car's worth at the end of the lease. High residual values lead to lower monthly payments.
- Money Factor: The financing rate. Multiply the Money Factor by 2400 to see the equivalent APR (Annual Percentage Rate).
Real-World Example
Imagine a car with an MSRP of $40,000. You negotiate the price to $38,000. The bank sets a 60% residual ($24,000) for a 36-month term with a Money Factor of 0.00125 (3% APR).
- Depreciation: ($38,000 – $24,000) / 36 = $388.89
- Rent Charge: ($38,000 + $24,000) × 0.00125 = $77.50
- Total Base: $388.89 + $77.50 = $466.39 per month.