Buying & Finance · Free tool
Free Car Lease Calculator
Enter the price, the residual value, the money factor and the term to see the monthly payment, what it is made of and the interest rate hidden in the money factor.
- Free to use
- No signup
- Runs in your browser
The car
The agreed value of the vehicle.
Such as an acquisition fee.
The capitalized cost reduction.
The lease
Set by the leasing company. Ask for it.
Estimated monthly lease payment
$425
For 36 months, including tax on the payment.
- Adjusted capitalized cost
- $31,000
- Residual value
- $20,300
- Depreciation, per month
- $297.22
- Rent charge, per month
- $128.25
- Tax, per month
- $0.00
- Money factor as an APR
- 6.00%
- Total of payments
- $15,317
- Total with money down
- $17,317
- Depreciation$297.22
- Rent charge$128.25
- Tax$0.00
Mileage limits, disposition fees and wear charges are not included. They are in the lease contract.
An estimate from the figures you enter, not a quote. Read the disclaimer. Updated .
02Your result
What your lease payment result means
A lease payment has two main parts. Knowing which is which tells you what to negotiate.
- 01
Depreciation
The car’s expected loss of value over the lease, spread across the months. A lower price or a higher residual value shrinks it.
- 02
Rent charge
The cost of the leasing company’s money, similar to interest on a loan. It comes from the money factor.
- 03
Money factor as an APR
The money factor multiplied by 2,400. It lets you compare the lease’s rate with a loan offer.
What to do next
Compare with buying
Enter the same car as a purchase and compare the payment and the total cost.
Car payment calculatorTest the residual value
See what the car is likely to be worth at the end of the term on your own assumptions.
Depreciation calculatorRead about financing
Loan rates by credit tier and how to arrive with a pre-approval.
Loan rates
03How it works
The car lease formula
A lease payment is the depreciation charge plus the rent charge, plus tax where it applies.
Depreciation = (adjusted capitalized cost − residual value) ÷ months
Rent charge = (adjusted capitalized cost + residual value) × money factor. Payment = (D + F) × (1 + tax rate)
Money factor × 2,400 = the interest rate as a percentage.
What each term means
- C
- Adjusted capitalized cost: the agreed price plus fees added to the lease, less your down payment, trade-in and rebates.
- R
- Residual value: what the car is expected to be worth at the end of the lease.
- n
- The number of monthly payments.
- MF
- The money factor, a small decimal such as 0.0025.
- D, F
- The monthly depreciation charge and the monthly rent charge.
What the tool assumes
- The residual value is a percentage of the MSRP, as leasing companies quote it.
- Sales tax is charged on each monthly payment. Some states tax a lease differently.
- Fees you do not add, such as a disposition fee at the end, are not included.
- You stay within the mileage limit and return the car in normal condition.
04Worked example
Car lease example on a $35,000 car
A $35,000 car negotiated to $33,000, with $2,000 down, a 58% residual value and a 0.0025 money factor over 36 months, before tax.
- 01
Find the adjusted capitalized cost
$33,000 price − $2,000 down
$31,000
- 02
Find the residual value
$35,000 MSRP × 58%
$20,300
- 03
Work out the depreciation charge
($31,000 − $20,300) ÷ 36
$297.22
- 04
Work out the rent charge
($31,000 + $20,300) × 0.0025
$128.25
- 05
Add the two
$297.22 + $128.25
$425.47
- 06
Convert the money factor
0.0025 × 2,400
6.0%
Monthly lease payment
$425
Over 36 months that is $15,317 in payments, plus the $2,000 paid at the start.
Try your own numbers05Background
How a car lease payment is built
When you lease, you pay for the part of the car you use up, plus a charge for the money tied up in it. The Federal Reserve Board’s leasing guide names the pieces a lease contract must show.
| Term | What it means |
|---|---|
| Gross capitalized cost | The agreed value of the vehicle and any items you pay for over the lease term. |
| Capitalized cost reduction | Any net trade-in allowance, rebate, noncash credit or cash you pay that reduces the gross capitalized cost. |
| Adjusted capitalized cost | The amount used in calculating your base monthly payment. |
| Residual value | The value of the vehicle at the end of the lease, used in calculating your base monthly payment. |
| Rent charge | The amount charged in addition to the depreciation. It is similar to interest on a loan. |
The rent charge formula looks odd because it adds two numbers that seem unrelated. It is a shortcut. Over the lease, the amount you owe falls from the adjusted capitalized cost to the residual value, so the average balance is half their sum. Charging a monthly rate on that average gives (C + R) ÷ 2 × APR ÷ 1,200, which is the same as (C + R) × APR ÷ 2,400. That is where the 2,400 comes from.
The price is negotiable on a lease exactly as it is on a purchase. See how to negotiate, and ask the dealer to state the money factor, since it is not always shown.
06When to use it
When to use a car lease calculator
Use it to check a dealer’s quote, and to see which number moves the payment most.
To check a lease quote
Enter the dealer’s figures and confirm the payment matches.
To uncover the rate
Convert a quoted money factor into an APR you can compare with a loan.
Lease or buy
Set the lease payment beside a loan payment on the same car.
To compare two offers
A lower payment can hide more money down. Compare the total cost.
Mistakes to avoid.
- Negotiating the monthly payment instead of the vehicle price.
- Ignoring the money due at signing when comparing two leases.
- Assuming the residual value is negotiable. It is normally set by the leasing company.
- Forgetting mileage limits and end-of-lease charges, which are outside the payment.
07Related guides and tools
Keep going from here.
Guides that go with this tool
Related tools
08Questions
Car Lease Calculator: your questions.
How is a car lease payment calculated?
Add the monthly depreciation charge to the monthly rent charge. Depreciation is the adjusted capitalized cost minus the residual value, divided by the number of months. The rent charge is the adjusted capitalized cost plus the residual value, multiplied by the money factor.
How do I convert a money factor to an APR?
Multiply the money factor by 2,400. A money factor of 0.0025 equals an interest rate of 6%. To go the other way, divide the APR by 2,400.
What is a residual value?
It is the value of the vehicle at the end of the lease, used in calculating your base monthly payment. A higher residual value means less depreciation to pay for and a lower payment.
What is a capitalized cost reduction?
It is anything that lowers the amount being leased: cash you pay up front, a net trade-in allowance or a rebate. It reduces the payment, but it is money you do not get back at the end.
Can I negotiate a lease?
Yes. The vehicle price is negotiable, and so are added fees. The residual value is normally fixed by the leasing company, and the money factor depends on your credit and the lender.
09Estimates and sources
Read this before you rely on it.
Built and checked by CarTipsMentor Team. Last updated . How we check our work.
Sources
- [1]Federal Reserve Board, Vehicle Leasing: Description of the Leasing Form
- [2]Federal Reserve Board, Vehicle Leasing: Monthly Payments
- [3]Edmunds, How to Calculate Your Own Car Lease (August 2025)