Auto Lease

Calculate monthly lease costs and compare options.

Formula & Methodology

Lease payment = depreciation fee + finance fee, where depreciation = (cap cost − residual) / term and finance = (cap cost + residual) × money factor.

Worked Example

A $30,000 car with a 55% residual over 36 months at a 0.0025 money factor leases for roughly $378/month before taxes.

Frequently Asked Questions

What is the money factor?

The money factor is the lease's interest rate. Multiply it by 2400 to convert it to an approximate annual percentage rate.

What is the residual value?

It is the car's estimated value at lease end, set by the lender as a percentage of the sticker price. A higher residual lowers the payment.

Does this include taxes?

No. Sales tax and acquisition fees are typically added on top of the base payment shown.

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