Monthly lease payment from residual and APR
Car Lease Calculator
A lease payment is two numbers added together: the depreciation the car loses over the term, and the rent charge on the money the lender has tied up. Enter the residual percentage and the APR and both come out.
How this is calculated
- Depreciation is the capitalized cost minus the residual value, divided by the number of months.
- The rent charge uses the money factor (APR ÷ 2400) applied to the average of cost and residual.
- Leases also charge acquisition and disposition fees, which are not part of the monthly maths.
Before you go
What is a residual value?
The percentage of MSRP the leasing company expects the car to be worth at the end of the term. Higher residuals make leases cheaper because less depreciation is being paid for.
Lease or buy?
Leasing suits people who want a new car every few years and drive under the mileage cap; buying wins once you keep the car past the loan term, because the payments stop and the asset remains.
Why does putting money down on a lease get discouraged?
If the car is written off early, the down payment is usually gone — gap insurance does not return it. Roll the cash into a smaller monthly instead if you can.
Estimation only. Rates, taxes and fees in your actual offer will differ, and this tool is not financial advice or a loan quote.