Car Lease Calculator
The price you negotiate with the dealer, before any down payment.
% of MSRP the car is worth at lease end. Check your lease agreement or lender's sheet.
≈ 3.0% APR
Monthly payment (with tax)
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How a Lease Payment Is Calculated
A lease payment has two components: depreciation and a finance charge.
Lease vs. Buy Comparison
Frequently Asked Questions
What is the money factor in a car lease?
The money factor is the financing charge on a lease, analogous to an interest rate. To convert to approximate APR, multiply by 2,400. A money factor of 0.00125 is roughly 3% APR. Dealers are not always upfront about the money factor — ask for it directly and compare it to the current buy rate for your credit tier.
What is the residual value?
The residual value is the car's estimated worth at the end of the lease term, set by the leasing company. A higher residual means lower depreciation to finance, resulting in lower monthly payments. You can typically buy the car at the residual value when the lease ends.
Is it better to put money down on a lease?
Generally no. A large down payment (cap cost reduction) lowers your monthly payment but increases your financial risk — if the car is totaled or stolen, insurance pays the leasing company, not you, and you lose the down payment. It's better to keep cash and pay monthly, or invest it instead.