Estimate a monthly car lease payment from the price, residual value, money factor and term.
How auto lease is worked out
A lease payment has two parts: depreciation (the value used up) and a finance charge (the money factor). Enter the negotiated price, residual percentage, money factor and term, and this calculator estimates the monthly payment with tax.
The money factor is the lease equivalent of an interest rate.
A worked example
As an example, with a negotiated price of 35,000, the calculator returns a monthly lease of $584.84. Underneath, Residual value comes out at $20,300 and Depreciation / mo at $408.33. Change any field and every figure updates as you type.
Using the calculator
- Enter the negotiated price and residual percentage.
- Enter the money factor and term.
- Add sales tax to see the monthly payment.
The formula
depreciation = (price − residual) ÷ term
finance = (price + residual) × money factor
Frequently asked questions
What is a money factor?
The lease version of an interest rate. Multiply it by 2,400 to get an approximate APR.
What is residual value?
The car’s predicted worth at lease end, set as a percentage of price. Higher residuals mean lower depreciation and payments.
Is leasing cheaper than buying?
Monthly payments are usually lower, but you don’t own the car. It depends on your needs — this is an estimate, not advice.