Car Lease Calculator
Calculate your monthly car lease payment based on MSRP, residual value, money factor, lease term, and down payment.
Monthly Lease Payment
Car lease payments have two components: depreciation and finance charge.
Depreciation Fee = (Net Cap Cost − Residual Value) / Lease Term
Finance Fee = (Net Cap Cost + Residual Value) × Money Factor
Monthly Payment = Depreciation Fee + Finance Fee
Where:
- Net Cap Cost = MSRP − Down Payment (negotiated price minus any down payment)
- Residual Value = MSRP × Residual Percentage (what the car is worth at lease end)
- Money Factor = Interest Rate / 2400 (the lease equivalent of an interest rate)
- Lease Term = Number of months
To convert money factor to APR: APR = Money Factor × 2400
Example: A money factor of 0.00125 = 3.0% APR
Tips:
- A higher residual value means lower monthly payments
- Money factors below 0.001 are considered excellent
- Always negotiate the cap cost (selling price), not just the monthly payment