Auto Lease Calculator
Calculate your monthly auto lease payment based on the capitalized cost, residual value, money factor and lease term.
How to use the Auto Lease Calculator
- Enter your inputs into the Auto Lease Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The auto lease formula
Payment = Depreciation + Finance charge · · · Depreciation = (Cap cost − Residual) / Term · · · Finance = (Cap cost + Residual) × MF
Cap cost is the negotiated price minus down payment and trade-in. Residual is the predicted value at lease end. Money Factor (MF) ≈ APR / 2400. Sales tax is added on the calculated payment in most states.
Worked example
A $40,000 car with 60% residual ($24,000), $35,000 cap cost, MF 0.0025 (≈6% APR), 36-month lease: depreciation = ($35,000 − $24,000)/36 = $305.56; finance = ($35,000 + $24,000) × 0.0025 = $147.50. Pre-tax payment: $453.06/month.
Frequently asked questions
What is the money factor?
The lease equivalent of an interest rate, expressed as a small decimal. To approximate the APR, multiply by 2400 — a money factor of 0.0030 corresponds to about 7.2% APR.
What does residual value mean?
The car's predicted value at lease end, set by the leasing company. Higher residual = lower depreciation portion = lower monthly payment.
Should I lease or buy?
Lease is cheaper short-term and offers regular new-car ownership; buying is cheaper long-term and builds equity. Lease makes more sense for those who want a new car every 2–3 years.