Loans
Car Lease Payment Calculator
A lease payment has two parts hiding inside one number: what the car loses in value while you have it, and what the lessor charges to finance the rest. Splitting them is the fastest way to see whether a deal is good or just well presented.
Residual value is a percentage of MSRP, not of the price you negotiate.
What the car is contracted to be worth at lease end, as a percent of MSRP.
Multiply by 2,400 to read it as an APR — 0.00125 is 3%.
Most states tax the monthly payment rather than the whole car.
Monthly lease payment
$403.33
Depreciation plus finance charge, with tax applied.
- Depreciation portion
- $333.33
- Finance charge
- $70.00
- Residual value at lease end
- $22,000
- Total you'll pay
- $17,520
Value the car loses while you hold it.
Money factor 0.00125 ≈ 3.00% APR.
All payments plus cash at signing.
How this calculator works
Residual = MSRP × residual percent. Net cap cost = negotiated price − cash due at signing. Depreciation fee = (net cap cost − residual) ÷ term. Finance charge = (net cap cost + residual) × money factor. Sales tax is applied to the sum, which is how most states treat leases.
Fees vary by lessor and state and are excluded here — an acquisition fee is often $600–$1,000 and is usually rolled into the cap cost. Compare the full lease worksheet, not just the monthly figure.
Try an example
Frequently asked questions
What is a money factor?
The lease equivalent of an interest rate, written as a small decimal. Multiply it by 2,400 to convert: 0.00125 is roughly a 3% APR. Dealers are not required to quote it as a percentage, which is exactly why it is worth converting yourself before signing.
Why does residual value matter so much?
Because you pay for the difference between the price and the residual. A car with a high residual — one that holds value — is cheaper to lease even at the same sticker price. Residuals are set by the leasing company against MSRP, so negotiating the price down does not lower the residual.
Should I put money down on a lease?
Usually not. A lease down payment (a 'cap cost reduction') is prepaid depreciation, and if the car is totalled or stolen in month two, that cash is generally gone — the insurer pays the leasing company, not you. Many people prefer a higher payment and nothing at risk.
What isn't in this number?
Acquisition and disposition fees, registration, the mileage allowance, and wear-and-tear charges at return. Going over a 12,000-mile allowance typically costs 15–25 cents a mile, which can turn a good monthly payment into an expensive final bill.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.