Car Lease Payment Calculator
Depreciation + rent charge from cap cost, residual %, term, and money factor. Click any i for detail.
Lease terms
MSRP ($)
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MSRP
Sticker price for residual %. |
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|---|---|
Negotiated cap cost ($)
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Cap
Selling price + fees − cap reduction. |
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Residual (%)
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Residual
Percent of MSRP at lease end. |
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Term (months)
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Term
Lease length. |
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Money factor
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MF
Approx APR ≈ MF × 2400. |
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Sales tax (%)
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Tax
Applied to payment in many states (simplified). |
How to use this calculator
- Enter MSRP and capitalized cost.
- Set residual %, term, and money factor.
- Add local tax rate if payments are taxed.
- Read base and taxed payment.
Results explained
A common lease sketch splits payment into depreciation ((cap − residual)/term) and a finance/rent charge ((cap + residual) × money factor). Tax treatment varies by state.
Quick reference: lease payment
payment ≈ (cap−resid)/term + (cap+resid)×MF.
| Item | Detail |
|---|---|
| Residual $ | MSRP × residual% |
| MF → APR | ≈ MF × 2400 |
| Cap reduction | Lowers depreciation |
| Mileage | Not priced here |
Educational lease arithmetic — not a dealer quote.
How the estimate is built
resid$=MSRP×r%; dep=(cap−resid$)/n; rent=(cap+resid$)×MF; pay=(dep+rent)×(1+tax%).
Example scenario
MSRP $40k, cap $38k, 55% residual, 36 mo, MF 0.0025 → ~$636/mo with 7% tax.
FAQ
Is MF the interest rate?
Related: APR ≈ MF × 2400.
Acquisition fee?
Fold into cap cost if financed.
Due at signing?
Often multiple payments + fees — not fully itemized here.
Buy vs lease?
See lease vs buy calculator.