Car Lease Payment Calculator
Estimate a monthly car lease payment.
Lease rate factor; roughly APR ÷ 2400. Defaults to 0.0025.
Results update as you type.
How it works
Leasing lets you pay for the portion of a car you use rather than the whole vehicle, and this car lease payment calculator shows what that monthly figure will be before you sit down at the dealership. Enter the vehicle price, the residual value as a percentage, any down payment, the lease term in months, and the money factor, and it returns the estimated monthly payment. Understanding how a lease payment is built protects you from surprises. Unlike a loan, where you finance the full price, a lease charges you mainly for depreciation, the value the car loses while you drive it. A high residual value means the car holds its worth, leaving less to pay, which is why some models lease far more cheaply than others despite a similar sticker price. The money factor, meanwhile, is simply the interest rate of the lease dressed in unfamiliar clothing. Seeing the payment broken into its causes lets you shop smarter. You can test how a larger down payment lowers the monthly figure, how a higher residual makes a lease more attractive, or how a steeper money factor quietly adds cost. Because the depreciation and finance portions respond differently to each input, adjusting them one at a time reveals which lever actually moves your payment, helping you negotiate the terms that matter and recognise a genuinely good lease deal from a merely cheap-looking one.
payment = depreciation + finance charge
A lease payment has two parts. The depreciation portion spreads the value the car loses during the lease over the term: it is the price minus your down payment minus the residual value the car is expected to keep, divided by the number of months. The finance charge is rent on the money tied up, calculated by multiplying the sum of the starting and residual balances by the money factor. Adding the two gives the monthly payment.
Source:Standard lease payment formula (depreciation + finance charge)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter vehicle price, residual value and lease term.
- 2
Adjust the options
Adjust down payment and money factor if they apply — sensible defaults are already set.
- 3
Read your result
Monthly payment updates instantly as you type — no button to press.
Frequently asked questions
What is a residual value?
The residual value is what the leasing company expects the car to be worth at the end of the lease, usually expressed as a percentage of the original price. It is set by the lessor, not negotiated. A higher residual means the car depreciates less during your lease, so you pay for a smaller drop in value and your monthly payment is lower, which is why cars that hold value well often lease cheaply.
What is a money factor and how does it relate to APR?
The money factor is the lease equivalent of an interest rate, written as a small decimal like 0.0025. To approximate the equivalent annual percentage rate, multiply the money factor by 2400. So 0.0025 corresponds to roughly a 6 percent APR. A lower money factor means cheaper financing on the lease, so it is worth asking the dealer for the exact figure they are using in your quote.
Does a bigger down payment always help?
A larger down payment, sometimes called a capitalized cost reduction, lowers your monthly payment by reducing both the depreciation and finance portions. However, if the car is stolen or totaled early in the lease, that upfront money is generally not refunded, so you risk losing it. Many advisers suggest keeping the down payment modest and instead prioritising a lower price and money factor for the best overall value.
What does this estimate leave out?
This calculator focuses on the base monthly payment from depreciation and finance charges. Real lease quotes also add sales tax, which varies by state, plus acquisition fees, registration, documentation charges, and any dealer add-ons. There may also be mileage limits with per-mile penalties for going over and charges for excess wear at return. Treat the figure here as the core payment before taxes and fees are layered on.
How can I lower my lease payment?
Focus on the inputs that drive the payment: negotiate a lower vehicle price, choose a model with a high residual value, and secure a low money factor through good credit or shopping around. A larger down payment reduces the monthly figure but carries risk if the car is lost. Longer terms lower the payment but keep you liable longer, so balance the monthly cost against total commitment.