Estimate your monthly car lease payment from the vehicle price, residual value, lease term, and money factor.
The Lease Payment Calculator estimates the monthly cost of leasing a vehicle by splitting the payment into a depreciation fee and a finance fee, the same way dealers structure lease quotes.
The money factor is the lease equivalent of an interest rate. If you only have an APR, divide it by 2400 to get an approximate money factor.
Depreciation Fee = (Cap Cost − Residual) ÷ Term. Finance Fee = (Cap Cost + Residual) × Money Factor. Monthly Payment = Depreciation Fee + Finance Fee (before tax).
A $35,000 vehicle with a $19,000 residual value, a 36-month term, and a 0.00125 money factor gives a depreciation fee of about $444 and a finance fee of about $67.50, for a monthly payment near $512 before tax.
Based on the asset's depreciation over the lease term plus a finance charge (money factor), divided across payments.
The leasing equivalent of an interest rate; multiplying it by 2400 gives an approximate equivalent APR.
It means the asset depreciates more over the lease, and you're paying for that larger depreciation through your payments.