Calculate a monthly lease payment from its real components, depreciation and finance charge, using the negotiated price, residual value, and money factor.
How it works
- Enter the MSRP and your negotiated sale price.
- Input the leasing company's residual value and money factor.
- The calculator combines depreciation and finance charges to reveal your true monthly cost.
Frequently asked questions
What is a money factor?
The lease equivalent of an interest rate. Multiply by 2400 to convert: 0.00125 x 2400 = 3 percent APR.
What is residual value?
The car predicted worth at lease end, set by the leasing company. A higher residual means less depreciation to pay for, a lower payment.
Should I put money down on a lease?
Often not recommended; a down payment is lost if the car is totaled early. Many advisors prefer rolling it into the payment.