Car Lease Payment Calculator (Money Factor)
Enter the capitalized cost, the residual value the lessor assigns to the car, the lease term, the money factor, and your local sales tax rate. The calculator splits your monthly payment into its two real components — a depreciation fee that pays for the value the car loses during the lease, and a rent fee that is the lessor's finance charge — then adds tax to give your total monthly payment and converts the money factor to an equivalent APR so you can compare it to a loan.
Vehicle & lease terms
Money factor × 2,400 = APR. Residual is set by the lessor, not negotiable.
Total monthly payment
$506.44
$473.31 base + $33.13 tax
Base monthly (pre-tax)
$473.31
Effective APR
5.28%
Payment breakdown
Where the monthly payment goes
How it works
A lease payment has two parts. The depreciation fee is the capitalized cost minus the residual value, divided by the number of months — it pays for the portion of the car's value you actually use up. The rent fee (also called the finance or lease charge) is the capitalized cost plus the residual, multiplied by the money factor; it is the lessor's interest-equivalent profit on the money tied up in the car. Adding the two gives your base monthly payment before tax.
The money factor is the lease world's version of an interest rate, quoted as a small decimal like 0.0025. To read it as an annual percentage rate, multiply by 2,400: 0.0025 × 2,400 = 6% APR. This calculator shows that conversion so you can compare a lease's financing cost against a car loan's APR on equal terms. A lower money factor means a cheaper lease, and dealers do not always volunteer it — you often have to ask.
Most US states tax the monthly lease payment rather than the whole car, so this tool applies your sales tax rate to the base monthly figure and adds it on top. The result is the total monthly payment you would expect on the contract. Because the depreciation fee is spread over the term, a longer lease lowers that fee per month — but you pay the rent fee for more months, so a longer lease is not automatically cheaper overall.
Frequently asked questions
How do I convert a money factor to an APR?+
Multiply the money factor by 2,400. A money factor of 0.0025 equals 0.0025 × 2,400 = 6% APR; 0.0015 equals 3.6%. The 2,400 constant folds together the 12 months in a year and the way the money factor is defined against the sum of the capitalized cost and residual, so the single multiplication gives you a figure directly comparable to a loan's APR. If a dealer only quotes the money factor, this is the fastest sanity check on whether the lease's financing is competitive.
Who sets the residual value, and why does it matter so much?+
The residual value is set by the leasing company (often the manufacturer's captive finance arm), not by you or the dealer, and it is their forecast of what the car will be worth when the lease ends. It matters because you are essentially paying for the difference between the cap cost and the residual: a higher residual means less depreciation to cover and a lower payment. Cars that hold value well lease cheaply for this reason. You generally cannot negotiate the residual, but you can and should negotiate the capitalized cost.
Does this estimate everything I'll pay on a lease?+
No. This is a screening estimate of the monthly payment, not a full lease quote, and leasing is not the same as owning — at the end you hand the car back with nothing to show for the payments unless you buy it out. The calculator does not model up-front amounts (down payment or cap-cost reduction, acquisition fee, first month, security deposit), the disposition fee at return, or mileage and wear-and-tear charges, all of which can be significant. Going over the mileage limit or returning the car with damage can add hundreds or thousands of dollars. Treat the figure here as the recurring monthly cost only.