# Auto Lease Calculator

> Work out a car lease payment from the price, residual value, money factor or APR, term, down payment and tax, with the depreciation and rent charge split out.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/auto-lease-calculator

A car lease payment has two parts: the depreciation you use up (price minus residual value, spread over the term) and a rent charge, which is the money factor times the price plus the residual.

Also called: Car lease calculator, Money factor calculator.

## Inputs
- MSRP (sticker price) (default 40000)
- Negotiated price (default 37000)
- Down payment (cap cost reduction) (default 2000; optional)
- Trade-in credit (default 0; optional)
- Fees added to the lease (default 0; optional)
- Residual value (unit % of MSRP; default 55)
- Rate given as (options: APR %, Money factor; default apr)
- APR or money factor (default 4.8)
- Lease term (unit months; default 36)
- Sales tax on the monthly payment (unit %; default 0; optional)
- Currency

## Results
- Monthly payment
- Depreciation part
- Rent charge (finance part)
- Tax per month
- Payment before tax
- Residual value
- Adjusted capitalised cost
- Money factor
- Equivalent APR
- Total rent charge
- Total cost of the lease

## Formula

```
Depreciation = (Cap cost − Residual) ÷ n;  Rent charge = (Cap cost + Residual) × MF;  Payment = (Depreciation + Rent charge) × (1 + tax);  MF = APR ÷ 2400
```

Where:
- Cap cost: negotiated price + fees − down payment − trade-in
- Residual: MSRP × residual %
- MF: money factor
- n: lease term in months

## Worked example
1. Residual = 40,000 × 55% = $22,000. Cap cost = 37,000 − 2,000 = $35,000.
2. Depreciation = (35,000 − 22,000) ÷ 36 = $361.11 a month.
3. Money factor = 4.8 ÷ 2400 = 0.002, so rent charge = (35,000 + 22,000) × 0.002 = $114.
4. Payment = 361.11 + 114 = $475.11 a month before any tax.

**Result:** The lease costs $475.11 a month, or about $19,104 over three years including the $2,000 down payment.

## What the result means

Most of a lease payment is depreciation, so a higher residual or a lower negotiated price cuts the payment most. A large down payment lowers the monthly figure but not the total cost, and it is lost if the car is written off early.

## Assumptions and limits
- Payments are monthly, using the standard money-factor method most US lessors use.
- Tax, where entered, is charged on each monthly payment.
- Tax on the down payment, registration, the disposition fee at lease end and excess-mileage charges are not included.
- Some states and countries tax the whole price of the car up front instead of each payment.

## Questions

### How do I convert a money factor to an APR?

Multiply by 2,400. A money factor of 0.0025 equals 6% APR. Divide an APR by 2,400 to get the money factor.

### Why add the residual to the cap cost for the rent charge?

It is a shortcut for the average amount you are financing over the lease: you start at the cap cost and end at the residual, and (cap + residual) × MF equals the average balance times the monthly rate.

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_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/auto-lease-calculator