Estimate monthly lease payments from capitalised cost, residual value and money factor.
Result
How to use this tool
The negotiated price after discounts and rebates, before fees.
The lease-end value and the number of months.
From the lease quote; multiply by 2400 to compare with an APR.
Down payment reduces the financed amount; tax is applied to the monthly payment.
Formula & worked example
A $30,000 capitalised cost with $2,000 down, $18,000 residual, 36 months and a 0.002 money factor gives a depreciation charge of $277.78 and a finance charge of $92.00 — $369.78 a month before tax.
Limitations — read this before you rely on it
Simplified lease maths: it excludes acquisition/disposition fees, registration, insurance, mileage overage and wear charges, and assumes a fixed money factor and residual. Actual lease contracts vary by lessor and jurisdiction; read the quote's fine print.
Frequently asked questions
The lease industry's way of quoting the interest rate: multiply it by 2400 to get the approximate APR (0.002 ≈ 4.8%).
The vehicle's predicted value at lease end. A higher residual lowers the monthly payment but can mean a higher buyout price.
Monthly payments are usually lower, but you build no equity and face mileage and wear charges. Total cost over years of ownership usually favours buying.
You return the vehicle, buy it at the residual (plus fees), or lease a new one — excess mileage and damage are charged on return.
Acquisition, disposition and registration fees are not in this core payment; add them to the capitalised cost or total cost when comparing quotes.