Car Lease Calculator
Monthly lease payment from price, residual, money factor and fees — with the two pieces of the payment laid out so you can negotiate the right one.
Money factor → APR: multiply by 2,400. A 0.00125 money factor is a 3% APR — if a dealer quotes only the factor, do that math before signing.
A lease payment has exactly two moving parts. The depreciation piece is the value the car loses while you drive it: capitalized cost minus residual, spread across the months. The rent charge is what the leasing company earns on the money — computed from a "money factor" that is just an interest rate wearing a disguise (multiply it by 2,400 and you have the APR equivalent).
That decomposition is your negotiation map. The cap cost is a car price like any other — haggle it. The residual is set by the manufacturer's bank and usually is not negotiable, but choosing a model with a high residual (typically strong-selling, reliable brands) lowers the payment without any argument at all. The money factor is absolutely negotiable — and dealers historically pad it; knowing the APR equivalent keeps that padding visible.
Be honest with yourself about mileage before choosing a lease over buying: 10,000-15,000 miles a year is the typical allowance, and overage charges run 15-30 cents per mile. If your commute is long, the lease-vs-buy comparison page runs the trade-off properly — leases reward people who want a new car every three years and drive gently; they punish everyone else.
Frequently asked questions
What is a good money factor?
Convert it first: money factor × 2,400 = APR equivalent. Anything near the best loan APRs for your credit tier is fair; well above it means padding.
What is a residual percentage?
The share of the original price the car is predicted to be worth at lease-end — typically 50-65%. Higher residual = lower payment, because you pay for the drop, not the car.
Should I put money down on a lease?
Cap reductions lower the payment but sit exposed — if the car is totaled early, that cash is gone. Many leasing guides prefer zero down and a higher payment.
Why is my lease quote different from this calculator?
Usually one of three things: the dealer padded the money factor, the cap cost includes add-ons you did not enter, or your state taxes leases monthly rather than up front. Ask for the four components and the difference will name itself.
Do I pay for maintenance on a lease?
Usually only routine items — oil changes and tires. The warranty covers the rest for the whole term, which is part of what the higher effective cost is buying.