Lease Payment Calculator
Calculate a monthly lease payment from the money factor.
About Lease Payment Calculator
A lease payment has two parts: the depreciation on the car plus a rent charge the money factor on the average of capitalized cost and residual. The money factor quietly sets the effective interest, so comparing it between dealers matters as much as the monthly number itself.
Formula
Lease Payment
Payment = depreciation share + (cap + residual) x money factor
- money factor
- Finance charge, roughly APR divided by 2400
Worked example
With the default values below, Lease Payment Calculator returns Residual Value of $22,040.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- MSRPminimum 0
- 38,000
- Negotiated priceminimum 0
- 35,000
- Residual percentageaccepts 0–90 %
- 58 %
- Lease termminimum 1 mo
- 36 mo
- Money factorminimum 0
- 0.0015
- Down paymentminimum 0
- 2,000
- Sales taxaccepts 0–20 %
- 6 %
Results
- Residual Value
- $22,040.00
- Monthly Lease Payment
- $387.00
- Monthly With Tax
- $410.22
- Total Lease Outlay
- $16,768.09
Step by step
- 1Values used
- 2Lease Payment
- 3Residual Value= 22,040.00
- 4Monthly Lease Payment= 387.00
- 5Monthly With Tax= 410.22
- 6Total Lease Outlay= 16,768.09
Assumptions and limits
- The result is derived only from the 7 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Lease Payment calculated?
Payment = depreciation share + (cap + residual) x money factor A lease payment has two parts: the depreciation on the car plus a rent charge the money factor on the average of capitalized cost and residual.
Why does Lease Payment matter?
The money factor quietly sets the effective interest, so comparing it between dealers matters as much as the monthly number itself.
What values do I need to enter?
This calculator takes 7 inputs: MSRP, Negotiated price, Residual percentage, Lease term, Money factor, Down payment, Sales tax. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.