🔑 Lease Calculator
A lease payment has two parts: the depreciation, which is the value the car loses over your term, and the finance charge, which is rent on the money tied up in the car. The money factor is simply the lease's version of an interest rate.
Enter the vehicle price, the residual percentage, the money factor, the term in months and any down payment. The calculator splits out both portions and gives the monthly lease payment.
How to use this calculator
Enter the vehicle price, residual percentage, money factor, term and down payment to compute a monthly car lease payment with its two parts.
- Type the Vehicle price.
- Enter the Residual value as a percentage of the price.
- Type the Money factor from the lease quote.
- Set the term in months and the down payment, then press Calculate.
Frequently asked questions
What are the two parts of a lease payment?
The depreciation portion, which is the capitalized cost minus the residual value divided by the months, and the finance charge, which is the capitalized cost plus the residual value times the money factor.
Can you show the maths on an example?
A $30,000 car with a 55% residual, 0.002 money factor, 36 months and $2,000 down gives about $319.44 of depreciation plus $89.00 of finance charge, for $408.44 a month.
How do I turn a money factor into an APR?
Multiply it by 2400. A factor of 0.002 is roughly a 4.8% APR, which lets you judge whether the lease financing is expensive.
What is capitalized cost?
The vehicle price minus your down payment and any rebates: the amount the lease is actually based on.