Capitalized cost
Capitalized cost is the negotiated lease price before reductions. A lower cap cost usually lowers the lease payment, so negotiation can matter as much as interest.
Lease Payment Calculator
Calculate estimated monthly lease payments for a car or property-style lease.
Changes display symbol only; no currency conversion.
Amount
Negotiated price.
Amount
Upfront cap reduction.
Amount
Estimated end value.
factor
Lease finance factor.
months
Lease length.
%
Monthly tax rate.
Amount
Recurring fees.
Resultsโ
| Estimated monthly payment | โ |
| Depreciation charge | โ |
| Finance charge | โ |
| Total lease payments | โ |
Adjusted cap costโ
Residual percentโ
APR equivalentโ
Currencyโ
This is a simplified planning estimate. Real-world costs, taxes, fees, rates, and timing can differ.
How it works
Estimate a lease payment
This Lease Payment Calculator estimates a monthly lease payment using capitalized cost, down payment, residual value, money factor, lease term, tax rate, and recurring fees.
It is designed mainly for car lease comparisons, but the same structure can help with other lease-style contracts where an asset has a starting value, an estimated end value, and a finance charge.
Actual lease contracts may include acquisition fees, registration charges, dealer fees, mileage limits, insurance requirements, incentives, and end-of-lease costs, so this calculator is a planning estimate.
Residual value
Residual value is what the asset is expected to be worth at lease end. A higher residual means you pay for less depreciation during the lease term.
Money factor
Money factor is the lease finance factor. Multiplying it by 2400 gives a rough APR equivalent, which helps compare financing cost between offers.
Taxes and fees
Taxes, monthly fees, and upfront charges can change the real cost. The calculator includes monthly tax and fees but real offers may have additional contract details.
Frequently asked questions
A simplified lease payment includes depreciation charge plus finance charge, then
taxes and fees. Depreciation is based on adjusted capitalized cost minus residual value divided by the lease
term.
Residual value is the expected value of the leased asset at the end of the term. In
vehicle leases, it is usually set by the leasing company and has a major effect on monthly payment.
Money factor is a lease financing number used instead of a normal interest rate. A
rough APR equivalent is money factor multiplied by 2400.
A down payment lowers monthly payment, but it increases upfront risk. If a leased
vehicle is stolen or totaled, upfront money may not be recovered in the way buyers expect.
Real leases may include acquisition fees, dealer fees, registration, insurance,
maintenance, disposition fees, mileage penalties, wear-and-tear charges, and incentives.
Yes. The currency selector changes the displayed symbol. It does not convert values,
so all lease inputs should use the same currency.