How it works
Estimate a monthly lease payment from vehicle price, residual value, term and APR or money factor — with every assumption visible.
The calculator subtracts any down payment from the vehicle price to get the adjusted capitalized cost. The monthly depreciation is the loss in value over the term (adjusted cost minus residual, divided by the months); the monthly finance charge applies the rate to the sum of adjusted cost and residual. Enter the rate either as an APR (money factor = APR ÷ 2400) or as a money factor directly. Upfront fees, taxes and registration are not computed: add them in the upfront field and they are shown separately from the monthly payment.
Formula
adjusted cost = price − down payment; depreciation = (adjusted cost − residual) ÷ months; finance charge = (adjusted cost + residual) × money factor; payment = depreciation + finance charge; money factor = APR ÷ 2400.
adjusted- Vehicle price minus down payment (currency)
residual- Residual value at the end of the lease (currency)
term- Lease term (months)
MF- Money factor (APR ÷ 2400) (factor)
Examples
- 30,000 car, 18,000 residual, 36 monthsPrice 30,000 · residual 18,000 · term 36 · money factor 0.00125 (APR 3%)Depreciation 333.33 · finance 60.00 · payment ≈ 393.33
Frequently asked questions
What is a money factor?
It is the lease form of an interest rate: money factor × 2400 gives the equivalent APR. Entering APR 3% and money factor 0.00125 produces the same payment.
Which costs are not included?
Taxes, registration, insurance, maintenance, mileage overage and disposition fees are not modelled. Add known upfront amounts in the upfront field; they appear as a separate upfront total.
How does the down payment help?
It lowers the adjusted capitalized cost, so both the depreciation and the finance charge fall. The adjusted cost is shown when a down payment is entered.
Where does the residual value come from?
From your lease offer — the lessor sets it as a percentage of the vehicle price. This calculator uses the amount you enter.
Is this a dealer quote?
No. It is a transparent estimate using the standard lease identity; actual offers include fees and taxes that vary by country.
How to read the result
The payment is the sum of depreciation (what the car loses in value while you use it) and the finance charge (the cost of the money). A higher residual or shorter term generally lowers the depreciation part.
Limitations
Generic estimate: no country-specific tax, registration, subsidy or insurance rules. Residual value and rate must come from your offer. Not a dealer quote and not financial advice.
Source: Standard lease-payment identity (depreciation + finance charge); money factor = APR ÷ 2400.