Car Lease Calculator
Calculate a monthly lease payment from cap cost, residual and money factor.
Please note: Estimates for planning only. Real fuel economy, depreciation, insurance and lease terms vary widely by vehicle, region and driving style. Confirm figures against a dealer quote or your own records before relying on them.
What the Car Lease Calculator does
A lease payment has two parts: the depreciation you consume during the term, spread evenly, and a rent charge on the money tied up in the car. The rent charge is calculated on the sum of the cap cost and the residual because the lender has the full value at risk throughout.
Formula
Adjusted cap cost = Negotiated price − Down payment − Trade-inDepreciation fee = (Adjusted cap − Residual) ÷ TermFinance fee = (Adjusted cap + Residual) × Money factorMoney factor = APR ÷ 2400
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Vehicle MSRP | selected currency | Yes | Accepts more than 0. |
| Negotiated price (capitalised cost) | selected currency | Yes | Accepts 0 or more. |
| Cash down / cap cost reduction | selected currency | Optional | Accepts 0 or more. |
| Trade-in credit | selected currency | Optional | Accepts 0 or more. |
| Lease term | months | Yes | Accepts 1 or more. |
| Residual value | % | Yes | Percentage of MSRP the car is worth at lease end. |
| Interest given as | one of 2 options | Yes | — |
| APR | % | In some modes | Shown Interest given as is APR. |
| Money factor | number | In some modes | Shown Interest given as is Money factor. |
| Sales tax on payments | % | Optional | — |
| Acquisition and dealer fees | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Interest given as and Currency.
- Enter Vehicle MSRP, Negotiated price (capitalised cost), Lease term and Residual value.
- Fill in the remaining inputs the form shows for your choice.
- Optionally add Cash down / cap cost reduction, Trade-in credit and Sales tax on payments.
- Select Calculate.
Worked example
A $35,000 MSRP car negotiated to $33,000, $2,000 down, 36 months, 55% residual, 6% APR.
- MSRP
- $35,000
- Cap cost
- $33,000
- Down
- $2,000
- Term
- 36
- Residual
- 55%
- APR
- 6%
Residual $19,250, adjusted cap $31,000. Depreciation fee $326.39, finance fee $125.63 — a payment of $452.01.
Frequently asked questions
What is a money factor?
The lease equivalent of an interest rate, expressed as a small decimal. Multiply by 2,400 to convert it to APR — 0.0025 is 6%.
Should I put money down on a lease?
It lowers the payment but is at risk: if the car is written off early, the insurer pays the leasing company and your down payment is generally not refunded.
Why does a high residual make a lease cheaper?
You only pay for the value the car loses while you have it. A high residual means less depreciation to cover across the term.