Car Lease Calculator
Calculate your exact monthly lease payment, total cost, and whether leasing beats buying for your situation.
Vehicle & Deal Details
How Lease Payments Are Calculated
A lease payment has two parts: depreciation and finance charge. The depreciation portion is the cap cost (negotiated price minus down payment) minus the residual value, divided by the number of months. The finance charge is the sum of the cap cost and residual value multiplied by the money factor. The money factor is essentially a monthly interest rate — multiply it by 2,400 to get the approximate APR.
What Is a Good Money Factor?
Money factors vary monthly and are set by the manufacturer's captive finance arm (e.g., BMW Financial, Toyota Financial). A money factor of 0.00125 = 3% APR. Anything below 0.002 (4.8% APR) is generally competitive. Always convert to APR (×2,400) to compare with loan rates. Dealers sometimes mark up the money factor — you can negotiate this separately from price.
Residual Value and Why It Matters
The residual value is the predetermined buyout price at lease end, expressed as a percentage of MSRP. A higher residual means you're paying for less depreciation — resulting in lower monthly payments. Trucks and Honda/Toyota vehicles often have high residuals (55–65%). German luxury brands often have lower residuals (42–50%), meaning more depreciation is built into your payment.
Leasing vs. Buying
Leasing makes financial sense if you: always want a new car under warranty, drive 12,000 miles or fewer per year, and don't want the hassle of selling. Buying wins if you drive a lot, keep cars long-term, or want to build equity. Over 10 years, buying typically costs 15–25% less than perpetual leasing — but leasing keeps out-of-pocket monthly costs lower.