Free Lease Calculator - Calculate Monthly Lease Payments
Calculate estimated monthly car lease payments based on MSRP, residual value, and money factor.
Formula & Methodology
A lease payment consists of three parts: a depreciation fee covering the car's loss in value, a finance fee (interest), and applicable sales taxes.
- Depreciation Fee = (Cap Cost - Residual) / Term
- Finance Fee = (Cap Cost + Residual) × Money Factor
- Monthly Payment = Depreciation + Finance + Taxes
Worked Example
Using the Lease Payment Calculator: apply the formula above to your input values. For instance, Depreciation Fee = (Cap Cost - Residual) / Term, then Finance Fee = (Cap Cost + Residual) × Money Factor. The tool performs each step instantly and shows the result.
Frequently Asked Questions
How is a lease payment calculated?
It combines depreciation (price minus residual value) with a rent charge based on the money factor over the lease term.
What is the money factor?
It is the lease equivalent of an interest rate; multiply it by 2,400 to approximate the annual percentage rate.
What is residual value?
The car’s estimated worth at lease end; a higher residual means less depreciation and a lower monthly payment.