Lease Calculator
The lease payment = depreciation portion + finance portion + sales tax. See each part of what you'd be paying.
Monthly payment
Total / month
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Depreciation portion
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Finance portion
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Sales tax
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APR equivalent
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Residual value
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Total cost over term
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The lease formula
The monthly lease payment is the sum of two parts. The depreciation portion is (cap cost − residual) ÷ months — you pay for how much value the car loses during your term. The finance portion is (cap cost + residual) × money factor — interest on the average balance you're financing. Sales tax is added on top.
Money factor × 2400 gives roughly the APR. A money factor of 0.0020 ≈ 4.8% APR. Anything above 0.003 (≈ 7.2% APR) is high for a lease.
What residual really means
The residual percentage is what the manufacturer believes the car will be worth at lease end. Higher residual → less depreciation → lower lease payment. Brands with high resale value (Toyota, Honda, Lexus) typically have the best lease deals because of this. Models with steep depreciation (luxury sedans, EVs) often have residuals so low that leasing makes no sense.