Part of the Automotive collection — 4 tools available
Car Lease Calculator
Calculate your monthly lease payment and total lease cost. Enter MSRP, negotiated price, residual value, money factor, and term for an accurate lease estimate.
About This Calculator
Leasing a car can be a smart financial move if you understand the numbers — but dealerships love to focus on the monthly payment while burying the real cost in money factors, residual values, and acquisition fees buried in the fine print. A lease payment is fundamentally depreciation plus rent charges, but most people never see the math broken down. Our car lease calculator shows exactly what you're paying: depreciation cost per month, rent charge per month, total lease cost including down payment, and the money factor converted to APR for comparison.
The Formula Behind This Calculator
Monthly = (Cap cost - Residual) / Term + Money factor * (Cap + Residual) Money factor = APR / 2,400.
Understanding the math helps you verify results and make better decisions for your project.
Related Tools
How to Use
- 1Enter the MSRP (window sticker price).
- 2Enter the negotiated selling price (always negotiate this, even on a lease).
- 3Enter the residual value percentage (from the lease deal sheet).
- 4Enter the money factor (multiply by 2400 to see the equivalent APR).
- 5Enter lease term and any down payment.
- 6Click Calculate.
When to Use
- →Evaluating a lease deal from a dealership to make sure the monthly payment adds up correctly
- →Comparing lease vs buy costs for the same vehicle over the same time period
- →Negotiating the selling price and money factor on a lease — most people only negotiate the monthly
Tips
- ✓Always negotiate the selling price on a lease, not just the monthly payment — a lower cap cost means lower payments
- ✓Multiply the money factor by 2400 to see the real APR — a 0.002 money factor equals 4.8% interest
- ✓Avoid large down payments on a lease — if the car is totaled, you lose that money since you don't own the vehicle
FAQ
What is a money factor?
It's the lease equivalent of an interest rate. Multiply by 2400 to get the APR. A money factor of 0.0015 = 3.6% APR.
What is residual value?
The predicted car value at lease end, expressed as a percentage of MSRP. Higher residual = lower monthly payments. This is set by the leasing company, not the dealer.
Should I put money down on a lease?
Minimal down payment is better. If the car is totaled, you lose that down payment. Keep out-of-pocket low and roll costs into the monthly payment.
Related Calculators
Tire Size Calculator
Compare tire sizes and see the difference in diameter, width, sidewall height, and revolutions per mile. Essential before switching tire sizes on any vehicle.
Fuel Cost Calculator — Calculate Gas Cost for Any Trip
Calculate fuel cost for any trip. Enter distance, fuel efficiency (MPG), and gas price to estimate total fuel cost and gallons needed for your road trip.
Car Loan Calculator — Monthly Payment Calculator
Calculate your monthly car payment and total interest. Enter loan amount, interest rate, and term to see the full cost of financing your next vehicle.