Using the Auto Lease Calculator
Use the adjusted capitalized cost after any upfront reductions and financed charges. The residual is the contract’s end-of-lease value, not a personal prediction of what the vehicle might sell for.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Capitalized cost
- 30000
- Residual value
- 18000
- Lease months
- 36
- Money factor
- 0.002
- Payment sales tax (%)
- 0
Example result
- Base monthly payment
- 429.33
- Monthly with tax
- 429.33
Method and assumptions
Payment = (capitalized cost − residual)/months + (capitalized cost + residual) × money factor. Fees must be included in capitalized cost.
Compare the agreement over its full term
A lease payment is only one part of an agreement. Compare the upfront amount, recurring payments and any end-of-term obligations on the same basis. Keep a refundable deposit distinct from a fee or a payment that reduces the financed amount. Mileage limits, purchase options and other contract terms may matter even when they are not modeled here.
Common question
Is the money factor the same as an interest percentage?
No. It is a small decimal used in the lease finance-charge formula. Enter the quoted money factor directly rather than inserting an annual interest percentage.
Guide updated .