Enter vehicle MSRP, negotiated selling price, down payment (capital reduction), lease term, residual percentage, money factor, and sales tax rate to calculate your exact monthly car lease payment.
How to use this calculator
Enter the manufacturer's suggested retail price (MSRP) of the vehicle.
Enter the negotiated vehicle selling price (Capitalized Cost).
Enter any cash down payment, trade-in equity, or manufacturer rebate (Cap Reduction).
Select the lease term in months (standard is 36 months).
Set the lease residual value percentage and money factor (or convert APR by dividing by 2,400).
Read your total monthly payment (depreciation + rent charge + local sales tax) and total out-of-pocket lease cost.
$35,000 MSRP vehicle negotiated at $32,500 with $2,500 down (36 mos @ 55% residual, 0.0021 MF, 7% tax) → Net Cap Cost $30,000, Residual $19,250. Depreciation $298.61 + Rent $103.43 + Tax $28.14 = $430.18/mo.
Key insights
Monthly lease payments consist of two parts: depreciation (the value lost during the lease) and rent charge (finance interest fee).
To convert a Money Factor (MF) to equivalent APR, multiply the Money Factor by 2,400 (e.g. 0.0021 MF × 2400 = 5.04% APR).
Putting a large cash down payment on a car lease is generally discouraged because if the leased car is totaled or stolen early, insurance pays the leasing company and your down payment cash is lost.
Higher residual value percentages (e.g. 60% vs 50%) directly lower your monthly lease payment because you are financing less depreciation.
How to interpret your result
Total Monthly Lease Payment
The combined monthly bill including depreciation fee, rent finance charge, and local state sales tax.
Residual Value
The estimated predetermined value of the vehicle at the end of the lease term, which serves as your buyout option price.
Equivalent APR
The annual interest rate implied by the lease Money Factor.
Frequently asked questions
How do I convert a lease money factor to an interest rate (APR)?
Multiply the money factor by 2,400. For example, a money factor of 0.0025 equals an APR of 6.00% (0.0025 × 2400 = 6.00%).
Should I put money down on a car lease?
Most automotive experts recommend $0 down on a lease. GAP insurance covers the vehicle value if totaled, but cash down payments are non-refundable.
What happens at the end of a car lease?
You can either turn in the vehicle (paying any excess mileage or wear fees), purchase the vehicle for the preset residual value, or trade it in for a new lease.
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