Car Lease Calculator
Calculate monthly car lease payments from cap cost, residual value, and money factor.
This car lease calculator - also an automobile lease calculator or auto lease calculator - estimates your monthly lease payment from the vehicle's negotiated capitalized cost, its residual value at lease end, the money factor (lease interest rate), and the lease term.
Enter the cap cost, residual value, money factor, and term in months, and the calculator returns your estimated monthly lease payment.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $30,000 cap cost, $18,000 residual, 36-month term, 0.00125 money factor | $393.33/month | Depreciation = ($30,000 − $18,000) ÷ 36 = $333.33. Finance charge = ($30,000 + $18,000) × 0.00125 = $60.00. Payment = $333.33 + $60.00 = $393.33. |
| $40,000 cap cost, $22,000 residual, 36-month term, 0.00150 money factor | $593.00/month | Depreciation = ($40,000 − $22,000) ÷ 36 = $500.00. Finance charge = ($40,000 + $22,000) × 0.0015 = $93.00. Payment = $500.00 + $93.00 = $593.00. |
The Two Parts of a Lease Payment
A lease payment combines a depreciation charge (the difference between cap cost and residual value, divided by the lease term) and a finance charge (the sum of cap cost and residual value, multiplied by the money factor). Sales tax is often added separately depending on state rules.
What Is a Money Factor?
A money factor is a lease's interest rate expressed in a small decimal form rather than a percentage. Multiply the money factor by 2,400 to convert it to an approximate equivalent APR - a money factor of 0.00125 is roughly a 3% APR.
How to Use the Car Lease Calculator
- Open the Car Lease Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the car lease calculator works.
Frequently Asked Questions
How do I calculate a car lease payment?
Add the depreciation charge (cap cost minus residual value, divided by term) to the finance charge (cap cost plus residual value, multiplied by the money factor) - this lease payment calculator combines both automatically.
What is a money factor in a car lease?
It's the lease's interest rate expressed as a small decimal. Multiply it by 2,400 to convert to an approximate equivalent APR for comparison against loan interest rates.
Why does residual value matter for lease payments?
A higher residual value means the car is expected to hold more of its value, which lowers the depreciation portion of your payment - vehicles with strong resale value typically have lower lease payments for the same price.
How do I use this car lease calculator?
Enter the known values, review the units or settings, and the calculator updates the result instantly. The formula and example on this page show how the answer is produced.
What does the Car Lease Calculator calculate?
Calculate monthly car lease payments from cap cost, residual value, and money factor. It is designed for fast browser-based calculations without sign-up, downloads, or manual spreadsheet setup.
What formula does this car lease use?
The formula is: Payment = [(Cap Cost − Residual) ÷ Term] + [(Cap Cost + Residual) × Money Factor]. The formula splits payment into two conceptually distinct parts: depreciation (what the car actually loses in value while you have it) and a finance charge (the cost of the leasing company's capital tied up in the vehicle). The 'money factor' convention - a small decimal instead of a percentage APR - became standard in the US auto leasing industry in the late 20th century partly because it simplified the underlying math for dealers doing manual calculations before computer-based leasing software became widespread.
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Last updated: September 27, 2026.