Check a lease quote line by line and convert money factor to APR.
Enter your numbers to see the results.
Estimates only. This isn't financial advice. Lease tax rules differ by state, and dealers may add fees not shown here, so ask for an itemized lease worksheet.
Enter the numbers from a dealer quote to rebuild the monthly payment, so you can see whether the math checks out and which number to negotiate. It handles trade-ins (including negative equity), rebates, capitalized fees, and money factor to APR.
Your payment covers the car's drop in value over the lease, plus a finance charge called the rent charge, plus tax. The money factor is the interest rate in another form, so multiply it by 2,400 to get the APR.
This version taxes the monthly payment, the most common method. Some states tax the full price or your down payment up front, so check your state's rule.
58% residual, money factor 0.00125, 36 months, $2,000 down, an $895 acquisition fee rolled in and 7% tax. Adjusted cap cost is 32,000 + 895 − 2,000 = $30,895. Residual is $20,300. Depreciation is $294.31 a month and the rent charge is $63.99, for a base payment of $358.30, or $383.38 with tax. The money factor works out to 3.00% APR. Over the lease, 36 payments total $13,801.68, or $15,801.68 counting the $2,000 down.
The adjusted cap cost becomes $32,895, and the payment rises to $416.35, or $445.49 with tax. Putting money down on a lease mostly prepays it. If the car is totaled or stolen early, that down payment is usually gone, which is why many shoppers prefer to keep it small.
$45,000 MSRP, $43,000 price, 55% residual, money factor 0.0021, 36 months, $3,000 of trade-in equity and 6.25% tax. The adjusted cap cost is $40,000 and the residual $24,750. Depreciation is $423.61 and the rent charge $135.98, so the payment is $559.59, or $594.56 with tax. That money factor is about 5.04% APR.
$28,000 car at sticker, 62% residual, money factor 0.0008 (1.92% APR), 24 months, no tax: $443.33 depreciation + $36.29 rent charge = $479.62 a month. High residuals and low money factors make shorter leases more affordable than you might expect.
| Money factor | Approximate APR |
|---|---|
| 0.00080 | 1.92% |
| 0.00100 | 2.40% |
| 0.00125 | 3.00% |
| 0.00150 | 3.60% |
| 0.00200 | 4.80% |
| 0.00250 | 6.00% |
| 0.00300 | 7.20% |
Monthly depreciation, (cap cost − residual) ÷ term, plus a rent charge, (cap cost + residual) × money factor, plus tax. In the first example that's $294.31 + $63.99 = $358.30 before tax.
Multiply by 2,400. A money factor of 0.00125 is about 3.00% APR. To go from APR to money factor, divide by 2,400.
Positive equity lowers the cap cost, like a down payment. In the trade-in example, $3,000 of equity takes the cap cost from $43,000 to $40,000. Negative equity is added to the cap cost and raises the payment.
What the leasing company expects the car to be worth at the end of the lease, set as a percent of MSRP. A higher residual means less depreciation to pay for.
It lowers the payment, but it doesn't reduce the total much, since it's mostly prepaid depreciation. And if the car is totaled early, you may not get it back.
States handle lease tax differently. Most tax the monthly payment, but some tax the full cap cost or the down payment up front. This calculator uses the monthly method.
All monthly payments plus anything due at signing that isn't rolled into the payments. In the first example that's $13,801.68 in payments plus $2,000 down.