Auto Lease Calculator
Uses the standard depreciation + rent charge model (MSRP for residual; negotiated price less cap reduction for net cap cost).
Lease inputs
Money factor ≈ APR ÷ 2400. Taxes and dealer fees are excluded.
Estimated monthly payment (pre-tax):
Net cap cost: · Residual: · Money factor:
How lease payments are calculated
A lease payment has two parts: a depreciation charge (the net cap cost minus the residual value, spread evenly over the term) and a rent charge (similar to interest, calculated as the money factor times the sum of net cap cost and residual value). The money factor is usually quoted as a small decimal — multiplying an equivalent APR by 2400 gives a close approximation.
Frequently asked questions
Why is residual value based on MSRP, not the negotiated price? Leasing companies set residual value as a percentage of the manufacturer's suggested retail price regardless of what you actually pay for the car, since that's their estimate of the car's resale value at lease-end.
What is a money factor? It's the lease equivalent of an interest rate, expressed as a small decimal (e.g., 0.00188) instead of a percentage. Dividing an APR by 2400 gives an approximate money factor.
Does this include sales tax or fees? No — this is a pre-tax estimate. Many states tax each monthly lease payment rather than the full vehicle price, and dealers may add acquisition or disposition fees not modeled here.