Auto Lease Calculator
Calculate monthly car lease payments based on vehicle price, residual value, money factor, and lease term.
Input Parameters
Results
Understanding Car Leases
Lease payments consist of depreciation (cap cost minus residual) and a finance charge (money factor × sum of cap cost + residual). Money factor × 2400 ≈ equivalent APR. Negotiate the cap cost and residual value for the best deal.
What is the Auto Lease Calculator?
The Auto Lease Calculator is a consumer protection tool that breaks down the notoriously confusing math used by car dealerships. It calculates your exact monthly lease payment by analyzing vehicle depreciation and the "Money Factor."
How It Works (Algorithm)
Your lease payment has two parts: Depreciation and Finance Charges. Depreciation is calculated by taking the "Cap Cost" (the negotiated price) and subtracting the "Residual Value" (the car's projected worth in 3 years). The Finance Charge is calculated by multiplying the sum of those two numbers by the dealership's "Money Factor".
$$ \text{Finance Charge} = (\text{Cap Cost} + \text{Residual}) \times \text{Money Factor} $$
The dealership's hidden formula for charging interest on a lease.
How to Use It
Enter the MSRP of the car and your negotiated price. Input the down payment. Then, enter the dealer's quoted Residual Value percentage and the Money Factor (e.g., 0.00125). The tool will combine the depreciation and finance fees to output your monthly payment.