Power Calculators

🚗 Car Lease Calculator: Monthly Lease Payment

Check a dealer's lease quote before you sign.

By the Power Calculators team Updated

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Formula at a glance

Car Lease Calculator: Payment — (cap cost − residual) ÷ months + (cap cost + residual) × money factor. Example: $40,000 car, 58% residual, 36 months at 6% → Monthly lease payment: $571.04
How the Car Lease Calculator works: Payment — (cap cost − residual) ÷ months + (cap cost + residual) × money factor

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📘 About the Car Lease Calculator

A lease payment has two parts: depreciation — (capitalized cost − residual value) ÷ months — and a finance charge — (capitalized cost + residual) × money factor. Most US states then add sales tax to each payment.

The residual value (set by the lender as a % of MSRP) and the money factor (APR ÷ 2,400) have a big effect. Negotiate the price of the car, not just the monthly payment.

🧮 Formula

Payment
(cap cost − residual) ÷ months + (cap cost + residual) × money factor
Money factor
APR ÷ 2,400

✏️ Worked examples

$40,000 car, 58% residual, 36 months at 6%

You enter
MSRP / list price40000
Negotiated price38000
Residual value58%
Lease term36 months
Money factor (0 = use APR)0
APR equivalent6%
Down payment / cap cost reduction2000
Trade-in0
Acquisition & dealer fees995
Sales tax on payment7%
Currency$ Dollar
You get
Monthly lease payment$571.04
Depreciation part$383.19
Finance (rent) charge$150.49
Residual value$23,200
Money factor0.0025 (≈ 6% APR)
Total cost of the lease$22,557

$571.04.

$30,000 car, 60% residual, 24 months

You enter
MSRP / list price30000
Negotiated price29000
Residual value60%
Lease term24 months
Money factor (0 = use APR)0
APR equivalent6%
Down payment / cap cost reduction2000
Trade-in0
Acquisition & dealer fees995
Sales tax on payment7%
Currency$ Dollar
You get
Monthly lease payment$568.65
Depreciation part$416.46
Finance (rent) charge$114.99
Residual value$18,000
Money factor0.0025 (≈ 6% APR)
Total cost of the lease$15,648

$568.65.

🧭 How to use this calculator

What you enter

  • MSRP / list price
  • Negotiated price
  • Residual value (%)
  • Lease term (months)
  • Money factor (0 = use APR)
  • APR equivalent (%)
  • Down payment / cap cost reduction
  • Trade-in
  • Acquisition & dealer fees
  • Sales tax on payment (%)
  • Currency

What you get

  • Monthly lease payment
  • Depreciation part
  • Finance (rent) charge
  • Residual value
  • Money factor
  • Total cost of the lease

❓ Frequently asked questions

What is a good money factor?

Below about 0.0025 (6% APR); multiply the money factor by 2,400 to compare it with a loan APR.

Is putting money down on a lease a good idea?

Usually not much — if the car is written off early, the down payment is often lost.

What is the 1% rule for leasing?

A good deal is a monthly payment around 1% of MSRP or less, with little down.

What happens at the end of a lease?

You return the car (paying for extra miles or damage), buy it for the residual, or trade it in.

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