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.
Tested against worked examplesHow we verify
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
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.
Compare scenariosTry three values of one input
| MSRP (sticker price) | |||
|---|---|---|---|
| Monthly lease payment | $461.69 | $403.33−$58.36 | $344.97−$116.72 |
| Depreciation portion | $394.44 | $333.33−$61.11 | $272.22−$122.22 |
| Finance charge | $67.25 | $70.00+$2.75 | $72.75+$5.50 |
| Residual value at lease end | $19,800 | $22,000+$2,200 | $24,200+$4,400 |
| Total you'll pay | $19,621 | $17,520−$2,101 | $15,419−$4,202 |
Every other input stays at the value you set above — currently $40,000 for msrp (sticker price). Differences are measured against the first column.
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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.
What this assumes
- The money factor you enter converts to an APR by multiplying by 2,400 — dealers quote it in the obscure form for a reason.
- Residual value is set by the lender and is not negotiable, unlike the capitalised cost.
- Excess mileage, wear-and-tear charges and the disposition fee at return are excluded.
What changes this number
- Capitalised cost
- Negotiable, exactly like a purchase price, and the single biggest lever on a lease payment.
- Residual value
- A higher residual lowers the payment, because you only pay for the depreciation you use.
- Money factor
- The interest component. Always convert it — a factor of 0.00250 is a 6% APR.
A worked example
Take the $40k car, 55% residual, 36 months scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- MSRP (sticker price)
- $40,000
- Negotiated price (cap cost)
- $37,000
- Cash due at signing
- $3,000
- Residual value
- 55%
- Lease term
- 36 months
What it returns
- Monthly lease payment
- $403.33
- Depreciation portion
- $333.33
- Finance charge
- $70.00
- Residual value at lease end
- $22,000
- Total you'll pay
- $17,520
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.