Car Lease Calculator
Estimate a monthly car lease payment from price, residual value and money factor.
Results update as you type.
About this calculator
A car lease payment has two parts: depreciation, the value the car loses over the lease, and a finance charge on the money tied up while you drive it. This car lease calculator combines both from the negotiated price, the residual value at lease end, your down payment and the interest rate — which it converts into a money factor — then adds sales tax to reach the monthly figure.
Depreciation is (capitalised cost − residual) ÷ months, and the finance charge is (capitalised cost + residual) × money factor, where the money factor is APR ÷ 2,400. Take a 35,000 car with a 60% residual (21,000), 2,000 down and a 6% rate over 36 months: depreciation is about 333 a month, the finance charge about 135, giving roughly 468 before tax. You only pay for the 12,000 of value the car loses, not its full price.
Use it to check a dealer’s lease quote, to see how the residual and money factor drive the payment, or to compare leasing with buying. A car that holds its value has a high residual, depreciates less and is cheaper to lease — often the single biggest lever on the monthly cost.
Frequently asked questions
What is the money factor?
The money factor is the lease equivalent of an interest rate. Convert it to an APR by multiplying by 2,400 (so a 0.0025 money factor ≈ 6% APR). This tool does the reverse, dividing your APR by 2,400.
Why does residual value matter so much?
You only pay for the depreciation — the price minus the residual. A car that holds its value (high residual) depreciates less, so it is cheaper to lease even if it costs the same up front.
How do I convert a money factor to an APR?
Multiply the money factor by 2,400. A 0.0025 money factor is about 6% APR, and a 0.00125 factor about 3%. This lease calculator does the reverse — it divides the APR you enter by 2,400 — so you can think in familiar interest-rate terms.
Should I put money down on a lease?
A larger down payment (called a capitalised-cost reduction) lowers the monthly lease payment, but if the car is stolen or totalled early that money is generally not refunded. Many drivers keep the down payment small and accept a slightly higher payment for that reason.
What happens at the end of a car lease?
You typically return the car, having paid only for its depreciation, and may owe charges for excess mileage or wear. Alternatively you can buy it for the residual value the lease assumed, which is the 60% figure this calculator uses in the example.
Why is my lease payment lower than a loan payment on the same car?
Because a lease finances only the depreciation — the price minus the residual — while a loan finances the whole price. You build no ownership equity with a lease, which is the trade-off for the lower monthly payment.
API — use this calculator from code
Call this calculator as a free JSON endpoint — no key required. Send the field values below as query parameters or JSON. Read the full API docs →
Endpoint
GET https://calculator.free/api/v1/lease/curl
curl "https://calculator.free/api/v1/lease/?price=35000&residual=60&down=2000&rate=6&months=36"JavaScript fetch()
const r = await fetch(
"https://calculator.free/api/v1/lease/?" + new URLSearchParams({
"price": "35000",
"residual": "60",
"down": "2000",
"rate": "6",
"months": "36"
}));
const data = await r.json();
console.log(data.results);Results are estimates for general guidance only, not financial, medical or tax advice.