Auto Lease Calculator
Estimate the monthly lease payment on a vehicle from its capitalized cost, residual value, term, and money factor. Uses the industry-standard depreciation + rent formula.
Last updated: September 2026
Compare with similar
About this calculator
A lease payment has two parts: the depreciation charge (what you use up of the vehicle during the lease) and the rent charge (interest on the average outstanding value). Depreciation = (cap cost − residual) / months. Rent = (cap cost + residual) × money factor. Their sum is the pre-tax monthly payment.
The money factor is the lease equivalent of an interest rate, expressed as a decimal. Multiply by 2 400 to get the equivalent annual percentage rate (APR): a money factor of 0.0025 is 6% APR (0.0025 × 2 400 = 6). The factor is typically negotiable at signing and depends on your credit tier, the manufacturer's current promotional programs, and residual-value tables published by the leasing bank.
The residual value is set by the leasing bank ahead of time — you cannot negotiate it — and represents the expected wholesale value of the vehicle at lease end. High residuals (small (cap cost − residual)) make leasing cheap; low residuals make leasing expensive. Vehicles with strong resale (Toyota, Lexus, Honda) usually lease more cheaply than mass-market brands.
How to use
Example — a 3-year lease on a $30 000 car. Enter vehiclePrice = 30 000, residual = 18 000 (60% of cap cost, a strong residual), months = 36, moneyFactor = 0.0025 (≈ 6% APR). Depreciation = (30 000 − 18 000) / 36 = $333.33/month. Rent = (30 000 + 18 000) × 0.0025 = 48 000 × 0.0025 = $120/month. Pre-tax lease payment = 333.33 + 120 = $453.33/month. Compare to buying: at $30 000, 6% APR, 60-month loan the payment is ~$580 (see /en/calculators/financial/loan-payment/). Lease is cheaper monthly but you own nothing at the end — the trade-off is captured by /en/calculators/automotive/car-lease-vs-buy/.
Frequently asked questions
What is a money factor and how do I convert it to APR?
The money factor is the lease-industry way of quoting the interest rate on the finance portion of the lease. Multiply by 2 400 to get APR: 0.0025 = 6%, 0.0021 = 5.04%, 0.0015 = 3.6%. The 2 400 conversion arises because money factor is stated as a decimal that multiplies (cap cost + residual), and (rent × 12) / (average balance) reduces to money factor × 2 400.
Can I negotiate the money factor?
Yes, but it is credit-dependent. Manufacturers publish 'buy rate' money factors to dealers by credit tier; dealers can mark up (a 'markup' of 0.0002 above buy rate is common) and pocket the difference. Ask the dealer for the buy rate and negotiate down toward it. Manufacturer promotional programs sometimes advertise a 'subvented' money factor below the true buy rate — those are usually take-it-or-leave-it deals.
Does this include taxes?
No. Sales tax on a lease is charged monthly on the payment in most US states (a few charge upfront on the full cap cost). Add your local rate to the pre-tax monthly figure. Acquisition fee, disposition fee, and any capitalized-cost reduction (down payment) also affect the total — they are outside the scope of the depreciation-plus-rent formula.
What happens at lease end?
You have three options: (1) return the car and pay any wear/mileage overages, (2) purchase it at the residual value stated in the contract, or (3) trade it in — often used when market value exceeds residual (common on trucks and SUVs in the 2021–2023 supply-crunch era). Overages: typical wear-and-tear allowance is generous, but mileage overage is expensive ($0.15–0.30 per mile over the contracted allowance).