Finance

Car Lease Calculator

Calculate your monthly lease payment including depreciation, rent charge, and taxes.

MSRP ($)

Negotiated Price ($)

Residual Value (%)

% of MSRP remaining at lease end

Money Factor

Divide APR by 2400 to get MF

Lease Term (months)

Down Payment / Cap Reduction ($)

Trade-In ($)

Sales Tax (%)

Fees (acquisition, doc, dealer) ($)

Lease Payment Formula:
Depreciation = (Cap Cost − Residual) / Term
Rent Charge = (Cap Cost + Residual) × Money Factor
Monthly = Depreciation + Rent + Tax
Cap Cost = Price + Fees − Down − Trade
Implied APR = Money Factor × 2400

Car Lease Basics

A lease payment has two components: depreciation (paying for the value the car loses) and rent charge (interest on the money you're using). Lower negotiated price and higher residual value both reduce your payment.

Money Factor to APR

Money Factor	APR
0.00083	2.0%
0.00125	3.0%
0.00167	4.0%
0.00250	6.0%

Lease vs Buy

Leasing makes sense if: you drive <12k miles/year, want a new car every 3 years, want lower monthly payments, and don't want to deal with selling. Buying makes sense if: you keep cars 5+ years, drive high miles, or want to build equity.