How do I estimate money factor from APR?

Divide APR by 2400 (e.g., 6% APR ≈ 0.0025 MF). Reverse it by multiplying MF × 2400 to get an APR estimate.

Taxes vary by state. Add taxed amounts into cap cost or due at signing so the math reflects your jurisdiction.

Can I change residual value?

Residuals are set by the lender and tied to MSRP and term. You usually can’t negotiate them directly.

Does this include mileage penalties?

No. Add expected mileage/wear charges separately if you’ll exceed your allowance.

This shows lease costs only. Use the lease-vs-buy calculator or loan payment tools to compare ownership vs leasing.

finance calculator

Car Lease Payment Calculator

Estimate monthly lease payment, depreciation, finance charge, and total lease cost with money factor and fees.

Results

Depreciation charge: $389
Finance charge: $155
Estimated monthly payment: $544
Total lease cost: $23,580

How to use this calculator

Enter capitalized cost (after incentives) and residual value.
Enter lease term and money factor (APR ≈ money factor × 2400).
Add due at signing and lease fees to see total cost.

Inputs explained

Capitalized cost: Selling price after discounts/incentives plus any capitalized taxes/fees.
Residual value: Lease-end value set by the lender (often % of MSRP, not negotiated).
Lease term: Months in the lease (e.g., 24, 36, 39).
Money factor: Lease finance rate; multiply by 2400 for an APR estimate.
Due at signing: Upfront cash: down payment, taxes, first payment, tag/title as applicable.
Lease fees: Acquisition, disposition, doc, and other lender/dealer fees.

How it works

Depreciation charge = (Cap cost − residual) ÷ term.

Finance charge ≈ (Cap cost + residual) × money factor. Monthly payment = depreciation + finance.

Total lease cost = monthly × term + due at signing + fees.

Formula

Depreciation = (Cap cost − Residual) ÷ Term
Finance charge ≈ (Cap cost + Residual) × Money factor
Monthly payment ≈ Depreciation + Finance charge
Total lease cost = Monthly × Term + Due at signing + Fees

When to use it

Comparing dealer lease quotes to your own math before signing.
Testing how residual, money factor, or upfront cash changes payment and total cost.
Weighing low-payment offers against total cost over the full term.

Tips & cautions

Residuals are usually fixed by the lender; negotiate the cap cost and verify the money factor.
Watch add-ons rolling into cap cost (warranty, protection packages) that inflate depreciation and finance charges.
If you drive high mileage, estimate end-of-lease charges separately; this tool models base payment and fees only.
Does not calculate taxes for every jurisdiction—include taxed amounts in cap cost or due at signing as appropriate.
Does not include mileage or wear charges; add those separately if you exceed limits.
Assumes a constant money factor and fixed residual; specialty leases may vary.

Worked examples

$38,000 cap cost, $24,000 residual, 36 mo, MF 0.0025, $3,000 DAS, $1,000 fees

Depreciation ≈ ($38,000 − $24,000) ÷ 36 ≈ $388.89
Finance ≈ ($38,000 + $24,000) × 0.0025 ≈ $155
Monthly ≈ $543.89
Total cost ≈ ($543.89 × 36) + $3,000 + $1,000 ≈ $23,621

$45,000 cap cost, $27,900 residual, 39 mo, MF 0.0019, $2,500 DAS, $900 fees

Depreciation ≈ ($45,000 − $27,900) ÷ 39 ≈ $438.46
Finance ≈ ($45,000 + $27,900) × 0.0019 ≈ $138.81
Monthly ≈ $577.27
Total cost ≈ ($577.27 × 39) + $2,500 + $900 ≈ $26,368

Deep dive

This car lease payment calculator breaks down depreciation and finance charges using cap cost, residual value, term, and money factor so you can see the true monthly payment.

Enter due at signing and fees to view total lease cost over the full term, then compare it to dealer quotes or purchase scenarios.

FAQs

How do I estimate money factor from APR?: Divide APR by 2400 (e.g., 6% APR ≈ 0.0025 MF). Reverse it by multiplying MF × 2400 to get an APR estimate.
Are taxes included?: Taxes vary by state. Add taxed amounts into cap cost or due at signing so the math reflects your jurisdiction.
Can I change residual value?: Residuals are set by the lender and tied to MSRP and term. You usually can’t negotiate them directly.
Does this include mileage penalties?: No. Add expected mileage/wear charges separately if you’ll exceed your allowance.
Lease vs buy?: This shows lease costs only. Use the lease-vs-buy calculator or loan payment tools to compare ownership vs leasing.

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For estimation only. Taxes, incentives, and lender terms vary. Verify money factor, fees, and residuals with your dealer or lender before signing.