Lease Calculator – Estimate Monthly Lease Payments
Estimate a lease payment from capitalized cost, residual and money factor.
About the Lease Calculator
What is the Lease Calculator?
A lease calculator estimates the monthly payment on a vehicle lease from the capitalized cost, residual value, money factor and term.
Why use this calculator?
Leasing is appealing for lower payments and driving a new car often, but the math differs from a purchase. Understanding the components lets you negotiate.
How to use it
- Enter the capitalized cost (negotiated price).
- Enter the residual value and the money factor (APR ÷ 2400).
- Enter the term, any drive-off payment and sales tax.
- See the depreciation and finance portions separately.
Formula
Payment = (adjusted cap − residual) ÷ term + (adjusted cap + residual) × money factor.
Mileage limits, wear-and-tear and acquisition fees are not included here.
Frequently Asked Questions
What is the money factor?
It is the interest rate of a lease written as a decimal. Multiply it by 2400 to get the approximate APR.
Should I lease or buy?
Lease if you want a lower payment, a new car regularly, and care little about ownership. Buy if you keep vehicles long and want equity.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.
Should I make extra payments?
Extra payments reduce principal directly, which shortens the loan and cuts total interest. Many loans have no prepayment penalty, but check your agreement first.
What is APR and how is it different from the interest rate?
The interest rate applies only to the balance. The APR (annual percentage rate) also includes fees and points, so it reflects the true yearly cost of the loan.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.