What is a lease Money Factor?

The money factor (also called the lease factor or rent charge) is lease interest expressed as a small decimal fraction. To convert money factor to standard APR percentage, multiply by 2400 (e.g. 0.0025 × 2400 = 6% APR).

What is residual value in an auto lease?

Residual value is the predetermined value of the car at the end of the lease term, established by the leasing financial institution. A higher residual value lowers your monthly lease payment because you pay for less depreciation.

Should I put a large down payment on a car lease?

Generally no. If a leased car is totaled or stolen early in the lease, gap insurance reimburses the leasing company for the car's market value, but your upfront down payment is rarely recovered.

Finance

↵ to calculate

Auto Lease Calculator — Monthly Payment & Lease vs Buy Comparison

Free auto lease calculator. Estimate monthly car lease payments, total lease cost, depreciation fee, finance charge (money factor), and compare leasing vs buying.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

💵 A money helper! It works out things like how much to save, how much you owe, or how much you’ll have in the future. Just fill in the boxes and you’ll get your answer.

📌 Direct Answer & Summary

An auto lease calculator calculates the monthly payment and total costs of leasing a vehicle. A car lease payment consists of two core components: depreciation fee (the vehicle's drop in value over the lease term) and the finance fee (the interest charged on the money tied up in the vehicle, calculated using the money factor).

🚗 Vehicle Price ($)

Agreed selling price / MSRP

💵 Down Payment ($)

Cash down + trade-in allowance

📅 Lease Term (Months)

Duration of lease agreement

📉 Residual Value ($)

Estimated car value at lease end

📈 Interest Rate (APR %)

Money Factor: 0.00229

🏛️ Sales Tax (%)

Monthly state/city lease tax

Total Monthly Payment (Inc. Tax) 🚘

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Depreciation / mo

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Finance Fee / mo

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Sales Tax / mo

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Total Lease Cost

What is Auto Lease Calculator — Monthly Payment & Lease vs Buy Comparison?

How to use it

1️⃣ Enter the negotiated vehicle selling price (capitalized cost).
2️⃣ Enter any down payment or trade-in credit.
3️⃣ Enter the lease term in months (standard is 36 months).
4️⃣ Enter the residual value (estimated vehicle worth at lease end, usually 50%–60% of MSRP).
5️⃣ Enter the Money Factor (or Annual Interest Rate APR). Note: APR ≈ Money Factor × 2400.
6️⃣ Enter the local sales tax rate to view total monthly payment inclusive of tax.

Formula

Monthly Depreciation = (Net Cap Cost - Residual Value) / Lease Term | Monthly Finance Charge = (Net Cap Cost + Residual Value) × Money Factor | Base Monthly Payment = Depreciation + Finance Charge

💡 See it in action — a real example

For a $45,000 vehicle with a $5,000 down payment ($40,000 net cap cost), 36-month lease, $24,000 residual value, 0.0025 money factor (6% APR), and 7% sales tax: Monthly Depreciation = ($40,000 - $24,000) / 36 = $444.44. Monthly Finance Charge = ($40,000 + $24,000) × 0.0025 = $160.00. Base Payment = $604.44. With 7% tax ($42.31), total monthly payment = $646.75.

❓ Common questions

What is a lease Money Factor?: The money factor (also called the lease factor or rent charge) is lease interest expressed as a small decimal fraction. To convert money factor to standard APR percentage, multiply by 2400 (e.g. 0.0025 × 2400 = 6% APR).
What is residual value in an auto lease?: Residual value is the predetermined value of the car at the end of the lease term, established by the leasing financial institution. A higher residual value lowers your monthly lease payment because you pay for less depreciation.
Should I put a large down payment on a car lease?: Generally no. If a leased car is totaled or stolen early in the lease, gap insurance reimburses the leasing company for the car's market value, but your upfront down payment is rarely recovered.