Lease Calculator
Estimate monthly car lease payments from price, residual value and money factor.
Car lease payments work differently than loan payments — they're based on depreciation over the lease term plus a finance charge, not paying off the full vehicle price.
Why leasing math looks unfamiliar
You're not financing the full vehicle price — you're paying for the portion of value the car is expected to lose (depreciation) during your lease term, plus a finance charge calculated from the "money factor" (a lease-specific version of an interest rate).
Frequently asked questions
What is a money factor, and how does it relate to APR?
Money factor is usually expressed as a small decimal (like 0.0025) — multiply it by 2,400 to get an approximate equivalent APR for comparison purposes.
Why is residual value important?
A higher residual value (the car's predicted worth at lease-end) means less depreciation to pay for during the lease, which lowers your monthly payment.