Car Lease Payment Calculator

How it is calculated

A lease payment has two parts. The depreciation part pays for the value the car loses during the term: (price − residual) / term, where price is the agreed vehicle price, residual is the value expected at the end of the lease, and term is the number of months. The finance part is the lessor's charge: (price + residual) × money factor, with money factor = APR / 2400, the rate you enter in percent. The monthly payment is the sum of both. The tool uses the common lease formula but does not add sales tax, fees, down payment or mileage charges, which vary by country and lessor. The term must be above zero. Always compare the result with the lessor's written quote.

Common mistakes

• Typing the money factor (such as 0.002) in the rate field; the tool expects the APR in percent (4.8) and converts it itself.
• Entering the residual as a percentage of the price rather than as an amount.
• Using the sticker price when a negotiated price lowers the base for both depreciation and finance.
• Ignoring taxes, registration, acquisition and disposition fees, which can add noticeably to the real payment.
• Comparing terms by monthly payment alone; a longer lease may lower the payment but increase the total cost, and mileage limits may add charges.