Free lease calculator
Calculate a car or equipment lease monthly payment — enter cap cost, residual value, money factor, and term, updated live, as you type.
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Results are estimates. Consult a professional.
How the car lease payment calculator works
A car lease payment has two components: a depreciation charge and a finance charge. The depreciation charge spreads the vehicle's expected loss of value over the lease term. The finance charge is interest on the average of the amount you owe at the start and the residual value at the end — because you owe more at the beginning and less at the end, the average represents what you're effectively financing throughout the lease.
Dealers express the interest component as a money factor rather than an APR. To convert: money factor = APR ÷ 2,400. A money factor of 0.003 is equivalent to a 7.2% APR. The residual value — what the car is projected to be worth at lease end — is set by the leasing company (or captive finance arm) as a percentage of MSRP.
Worked example: $35,000 vehicle, 36 months, 7.2% APR
Taylor leases a $35,000 vehicle with a $5,000 down payment, bringing the cap cost to $30,000. The leasing company sets a 58% residual ($20,300) on a 36-month lease. The dealer quotes a money factor of 0.003, which equals a 7.2% APR.
Estimated monthly lease payments by cap cost and residual
Payments below assume 7% APR (money factor 0.002917) and no down payment. Residual is expressed as a percentage of cap cost (which equals MSRP in this table). Pre-tax estimates only.
| Cap cost | Residual | 24 months | 36 months | 48 months |
|---|---|---|---|---|
| $25,000 | 60% | $598/mo | $420/mo | $340/mo |
| $25,000 | 55% | $636/mo | $448/mo | $363/mo |
| $25,000 | 50% | $674/mo | $476/mo | $386/mo |
| $35,000 | 60% | $837/mo | $588/mo | $476/mo |
| $35,000 | 55% | $890/mo | $627/mo | $508/mo |
| $35,000 | 50% | $944/mo | $667/mo | $541/mo |
| $45,000 | 60% | $1,075/mo | $756/mo | $612/mo |
| $45,000 | 55% | $1,144/mo | $806/mo | $654/mo |
| $45,000 | 50% | $1,213/mo | $857/mo | $696/mo |
Source: Automotive Lease Guide (ALG); CFPB auto loan resources. Estimates assume 7% APR, no down payment, no acquisition fee. Actual residuals are set by the leasing company and vary by model, trim, and region.
Tips for getting the best lease deal
Leasing looks simple — one monthly payment — but three independent numbers (cap cost, residual, and money factor) each move the payment independently. Negotiating only the price while ignoring the other two is a common and expensive mistake.
- Negotiate the cap cost like a purchase price — The selling price is negotiable even on a lease. Getting $1,000 off the cap cost saves about $28/month on a 36-month lease and reduces the finance charge slightly too.
- Know the residual before you walk in — The leasing company sets the residual; dealers cannot change it. Look up current residuals on Edmunds.com or the manufacturer's website. A higher residual lowers your payment significantly.
- Convert the money factor to APR — Multiply the money factor by 2,400. A money factor of 0.004 is 9.6% APR — high for a car lease in most environments. Compare to current lease incentive rates.
- Watch what's rolled into the cap cost — Dealers sometimes add documentation fees, accessories, and gap insurance to the cap cost, which raises both the depreciation and finance charge components of your payment.
- Mind the mileage limit — Standard leases allow 10,000–15,000 miles per year; excess mileage charges run $0.15–$0.30 per mile. Estimate your annual mileage honestly and pay for extra miles upfront (cheaper than at turn-in).
Accuracy and limitations
This calculator uses the standard automotive lease formula and produces results consistent with dealer finance worksheets. It does not include acquisition fees, disposition fees, documentation fees, sales tax (which varies significantly by state and jurisdiction), or dealer add-ons. Residual values are set by the leasing company and change monthly — always confirm the current residual before signing. Results are estimates for comparison and planning purposes.
Not financial advice — consult a financial professional for your specific situation.
Car lease terms defined
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