Estimate a monthly car-lease payment from price, residual and money factor.
Calculated instantly in your browser.
How is a monthly car-lease payment calculated?
Depreciation fee = (capitalised cost − residual) ÷ term. Finance fee = (capitalised cost + residual) × money factor, where money factor = APR ÷ 2400. Payment = depreciation + finance, plus tax. A higher residual and lower money factor reduce the payment. A $30,000 car with $2,000 down, an $18,000 residual and 6% APR over 36 months is about $393 a month before tax.
Understanding your result
A lease charges you for the vehicle’s depreciation over the term plus a finance fee on the money tied up. A higher residual value and a lower money factor both reduce the payment.
Formula and method
Depreciation fee = (capitalised cost − residual) ÷ term. Finance fee = (capitalised cost + residual) × money factor, where money factor = APR ÷ 2400. Payment = depreciation + finance, plus tax.
Worked example
A $30,000 car with $2,000 down, an $18,000 residual and a 6% APR over 36 months is about $393 a month before tax.
How to use this tool
- Enter the price and down payment.
- Enter the residual value and APR.
- Set the term and read the monthly payment.
Common mistakes to avoid
- Confusing money factor with interest rate (multiply by 2400 to compare).
- Rolling taxes and fees into the price without noticing.
About the Auto Lease Calculator
The Auto Lease Calculator estimates your monthly car-lease payment from the negotiated price, down payment, residual value and money factor (from the APR), and breaks the payment into its depreciation and finance parts.
Who should use this tool
Anyone leasing a car and checking a dealer’s quote.
Benefits
- Monthly payment before and after tax.
- Splits depreciation and finance fees.
- Converts APR to money factor.
- Shows the total of payments.
Practical use cases
- Checking a dealer’s lease offer.
- Seeing how a bigger down payment changes the payment.
- Comparing lease terms.
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Frequently asked questions
What is the money factor?
The lease finance charge, expressed as a small decimal. Multiply it by 2400 to get the equivalent APR.
What is the residual value?
The car’s estimated worth at the end of the lease. A higher residual means less depreciation to pay for, lowering the payment.