Lease Payment Calculator
Calculate your monthly car lease payment. Enter vehicle price, residual value, money factor, and term to estimate your lease cost.
A car lease is essentially a long-term rental — you pay for the vehicle's depreciation during the lease term plus a finance charge (money factor). This calculator breaks down your monthly payment.
Key lease terms explained
- Cap cost (capitalized cost): the negotiated price of the vehicle
- Residual value: the estimated worth of the car at lease end (higher = lower payment)
- Money factor: the lease equivalent of an interest rate (multiply by 2,400 to convert to APR)
- Depreciation fee: (cap cost − residual) ÷ months
Lease vs buy: which is better?
- Lease pros: lower monthly payments, always driving a new car, no trade-in hassle
- Lease cons: mileage limits, no equity built, customization restrictions
- Buy pros: build equity, unlimited miles, keep long-term for lower cost