Estimate your monthly car lease payment based on the vehicle price, down payment, residual value, lease term, APR and sales tax.
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A lease payment has two core parts: a depreciation fee, which spreads the loss in value (adjusted capitalized cost minus residual value) evenly over the lease term, and a finance fee (sometimes called a rent charge), which is calculated using a money factor applied to the sum of the adjusted capitalized cost and residual value. Sales tax, where applicable, is then applied to the base payment.
This calculator converts the APR you enter into an equivalent money factor using the standard approximation: money factor = APR ÷ 2400, since money factors (small decimals like 0.00125) are less intuitive to reason about directly than a familiar interest rate.
Residual value is the vehicle's estimated worth at the end of the lease, set by the leasing company based on expected depreciation. A higher residual value means less depreciation to pay for over the lease, generally resulting in a lower monthly payment, though it also means a higher price if you choose to buy the vehicle at lease end.
A money factor is the lease equivalent of an interest rate, expressed as a small decimal (like 0.00125) rather than a percentage. Multiplying a money factor by 2400 gives you the approximate equivalent APR, and this calculator does that conversion in reverse from the APR you enter.
It varies by location. Many US states tax each monthly lease payment as it's made, which is what this calculator assumes, while others tax the full vehicle price upfront. Check your local rules if you want a fully precise figure.
A lower residual value means the vehicle is expected to depreciate more over the lease term, and that depreciation is what you're paying for through the monthly depreciation fee, so more depreciation means a higher payment.
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