Car Lease Calculator
Calculate your monthly lease payment from cap cost, residual value, and money factor. See total lease cost and compare to buying.
How to use Car Lease Calculator
The car lease calculator computes your monthly lease payment from the capitalized cost, residual value, money factor and lease term. It also converts money factor to an equivalent APR and shows the total lease cost versus financing the same vehicle — giving you both numbers to make an informed lease-or-buy decision.
- Enter the vehicle MSRP and negotiated cap cost (selling price).
- Add any cap cost reductions (down payment, rebates).
- Enter the residual value (from the dealer — a percentage of MSRP).
- Enter the money factor (from the dealer quote).
- Set the lease term in months and review the monthly payment.
Your data never leaves your device — 100% private processing.
How the monthly lease payment is calculated
A lease payment has two components: the depreciation fee and the finance fee. Depreciation fee = (Adjusted Cap Cost − Residual) ÷ Lease Term. Finance fee = (Adjusted Cap Cost + Residual) × Money Factor. Monthly payment = depreciation fee + finance fee + tax. Residual value is the car's projected worth at lease-end; a higher residual means less depreciation to pay and a lower monthly payment.
| Money factor | Equivalent APR | Notes |
|---|---|---|
| 0.00083 | ~2% | Excellent — manufacturer subsidised |
| 0.00125 | ~3% | Good rate |
| 0.00208 | ~5% | Fair market rate |
| 0.00292 | ~7% | Higher — check against bank financing |
| 0.00417 | ~10% | Expensive — likely better to finance |
Mileage limits, wear charges and lease-end options
Standard leases allow 10,000–15,000 miles per year; excess miles are charged at $0.10–$0.30 per mile. Negotiate higher mileage upfront (cheaper) rather than paying overage at return. At lease-end you can return, buyout at residual, or roll into a new lease. A buyout is worth considering if the car's market value exceeds the residual — you gain equity instantly.
Glossary
- Money factor
- Lease financing rate; multiply by 2,400 to get approximate APR.
- Residual value
- Car's projected worth at lease-end, expressed as % of MSRP.
- Cap cost
- The negotiated price of the vehicle being leased (equivalent to loan principal).
- Acquisition fee
- A lease origination fee charged by the leasing company, typically $600–$1,000.
Related reading
Frequently Asked Questions
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Why use Car Lease Calculator?
- Covers all major auto loan and leasing calculations
- Fuel cost comparisons with real MPG/L/100km data
- Instant results with no spreadsheet required
- Supports both metric and imperial units
Common use cases
- Calculate monthly payments on a car loan
- Compare the total cost of owning vs leasing
- Estimate annual fuel costs for a vehicle
- Calculate depreciation over 5 years
- Find out true cost of ownership including insurance
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