Car Lease Payment Calculator
Work out a lease payment from its main components.
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Car Lease Payment Calculator by TheCalcTools
How the Car Lease Payment Calculator works
Enter the capitalized cost, the MSRP and the residual percentage, the term, an interest rate and tax.
The depreciation fee spreads the loss in value over the term.
The finance charge is the money factor times the cost plus the residual. The money factor is the APR ÷ 2,400.
The formula
Worked example
Using the default values shown in the calculator:
| Capitalized cost (price less down payment) | $35000 |
|---|---|
| Residual value (% of MSRP) | 60 % |
| MSRP | $36000 |
| Lease term (months) | 36 |
| Equivalent interest rate (APR %) | 6 % |
| Sales tax on the payment (%) | 7 % |
- Residual = 60% × $36,000 = $21,600.
- Depreciation = ($35,000 − $21,600) ÷ 36 = $372.22.
- Finance charge = ($35,000 + $21,600) × 0.0025 = $141.50. Payment before tax: $513.72.
Result:
| Depreciation fee per month | $372.22 |
|---|---|
| Finance (rent) charge per month | $141.50 |
| Monthly payment before tax | $513.72 |
| Monthly payment with tax | $549.68 |
| Money factor | 0.0025 |
Frequently asked questions
What is a money factor?
A small decimal that expresses the lease’s financing cost. Multiply by 2,400 to get an approximate APR. For example 0.0025 is about 6%.
Does it include fees?
No. Acquisition fees, disposition fees, registration, and mileage or wear charges are extra.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.