About the Car Lease Calculator
A lease payment is the car's depreciation over the term plus a finance charge on the money tied up. This calculator builds both parts from the cap cost, residual value, and money factor.
How it’s calculated
Depreciation fee = (adjusted cap cost − residual) ÷ term. Finance fee = (adjusted cap cost + residual) × money factor. Monthly = depreciation + finance (+ tax). APR ≈ money factor × 2,400.
Example calculation
A $35,000 car with $2,000 down, a $21,000 residual, and a 0.0025 money factor leases for about $468/month over 36 months.
Frequently asked questions
What is a money factor?
It's the lease's interest rate in a different form. Multiply it by 2,400 to get the approximate APR — so 0.0025 is roughly 6%. Lower is better.
What is residual value?
The car's predicted worth at lease end, set by the leasing company. A higher residual means less depreciation to pay for, which lowers your monthly payment.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.