Lease Calculator
Estimate a car's monthly lease payment from the cap cost, residual, term and money factor.
Monthly payment$453.33
Depreciation portion$333.33
Finance (rent) portion$120.00
Monthly lease ≈ (cap cost − residual) ÷ term + (cap cost + residual) × money factor. The first part is depreciation — the value you use up — spread over the term; the second is the finance charge (rent). For a $30,000 car with an $18,000 residual over 36 months at a 0.0025 money factor: ($12,000 ÷ 36) + ($48,000 × 0.0025) = $333.33 + $120 = $453.33 per month, before tax. A money factor × 2,400 ≈ the equivalent APR (0.0025 ≈ 6%).
Educational estimate only — not professional advice.
Questions
How is a monthly lease payment calculated?
Add the depreciation charge and the finance charge. Depreciation is (cap cost − residual) ÷ months; the finance charge is (cap cost + residual) × money factor. A $30,000 car with an $18,000 residual over 36 months at a 0.0025 money factor is about $453.33 per month before tax.
What is a money factor?
It is the lease equivalent of an interest rate, written as a small decimal. Multiply it by 2,400 to approximate the APR — a 0.0025 money factor is roughly 6%.