Car Lease Payment Calculator

Estimate a monthly lease payment from its real ingredients. Enter the negotiated price (cap cost), the residual percentage, the money factor, the term, and any money down.

How this calculator works

A lease payment is two parts: the depreciation fee — the value the car loses over the term (cap cost minus residual), spread across the months — plus the finance fee, which is (cap cost + residual) times the money factor. We add them for the monthly payment. Multiply the money factor by 2,400 to see its rough APR equivalent.

What changes the number

The money factor is the lease’s interest rate in disguise — money factor × 2,400 ≈ APR. Lower is better.
A higher residual (the car holds value) means less depreciation to pay for, and a lower payment.
Money down lowers the payment but is largely lost if the car is totaled early — many advisors prefer little to nothing down.

Frequently asked questions

What’s a money factor?

It’s the lease’s finance charge, written as a small decimal. Multiply it by 2,400 for the approximate APR — so 0.0025 ≈ 6% APR.

What residual value should I use?

The leasing company sets it; common 36-month residuals run 50–60% of MSRP. A higher residual lowers your payment because you’re financing less depreciation.

Should I put money down on a lease?

Often no. A down payment lowers the monthly but is at risk if the car is totaled or stolen early, since gap coverage may not refund it. Many people lease with little down.