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Car Lease Calculator
Computes a closed-end vehicle lease payment from the negotiated price, residual value, money factor (or APR) and term: the monthly depreciation, finance charge, base payment, payment with sales tax and the total cost of the lease.
When to use
You are evaluating a car lease offer and want to check the monthly payment or convert the money factor to an APR.
Do not use when: You are buying the car with a loan (use car-loan), or the lease is open-ended with a balloon purchase (different terms).
Formula
residual_value = msrp × residual_percent/100; adjusted_cap_cost = negotiated_price − down_payment; monthly_depreciation = (adjusted_cap_cost − residual_value) / term_months; monthly_finance_charge = (adjusted_cap_cost + residual_value) × money_factor; base_payment = depreciation + finance charge; payment_with_tax = base_payment × (1 + sales_tax_percent/100); money_factor = apr_percent / 2400
Standard US closed-end lease arithmetic (Federal Reserve Regulation M disclosures). Acquisition and disposition fees, security deposits and mileage charges are not included unless folded into negotiated_price.
Inputs
| Parameter | Type | Unit | Required | Description |
|---|---|---|---|---|
msrp | number | yes | Manufacturer's suggested retail price; the residual value is a percentage of this. Range: > 0, ≤ 10000000 | |
negotiated_price | number | yes | Agreed selling price of the vehicle including any fees rolled into the lease. Range: > 0, ≤ 10000000 | |
residual_percent | number | % of MSRP | yes | Lessor's estimate of the vehicle's value at lease end as a percent of MSRP (typically 45–65 % for 36 months). Range: > 0, ≤ 100 |
money_factor | number | no | Lease finance rate as a decimal (e.g. 0.00125). APR = money_factor × 2400. Takes precedence over apr_percent. Range: ≥ 0, ≤ 0.05 | |
apr_percent | number | % | no | Alternative to money_factor: annual rate in percent (money_factor = apr_percent / 2400). Range: ≥ 0, ≤ 100 |
term_months | integer | months | default 36 | Lease length in months. Range: ≥ 1, ≤ 120 |
down_payment | number | default 0 | Cash or trade-in applied to reduce the capitalized cost. Range: ≥ 0, ≤ 10000000 | |
sales_tax_percent | number | % | default 0 | Tax rate applied to each monthly payment (the usual US method; some states tax the full price up front). Range: ≥ 0, ≤ 30 |
Outputs
| Output | Type | Unit | Description |
|---|---|---|---|
residual_value | number | msrp × residual_percent / 100. | |
adjusted_capitalized_cost | number | negotiated_price − down_payment. | |
monthly_depreciation | number | (adjusted_capitalized_cost − residual_value) / term_months. | |
monthly_finance_charge | number | (adjusted_capitalized_cost + residual_value) × money_factor. | |
base_monthly_payment | number | monthly_depreciation + monthly_finance_charge. | |
monthly_payment_with_tax | number | base_monthly_payment × (1 + sales_tax_percent / 100). | |
total_lease_cost | number | monthly_payment_with_tax × term_months + down_payment. | |
money_factor_used | number | Money factor applied (given, or apr_percent / 2400). | |
apr_equivalent_percent | number | % | money_factor × 2400. |
Example
MSRP 30,000, price 27,000, residual 55 %, MF 0.00125, 36 months: {"msrp":30000,"negotiated_price":27000,"residual_percent":55,"money_factor":0.00125,"term_months":36} → {"residual_value":16500,"adjusted_capitalized_cost":27000,"monthly_depreciation":291.67,"monthly_finance_charge":54.38,"base_monthly_payment":346.04,"monthly_payment_with_tax":346.04,"total_lease_cost":12457.5,"apr_equivalent_percent":3}
MSRP 40,000, price 37,500, residual 60 %, 6 % APR, 2,000 down, 7 % tax: {"msrp":40000,"negotiated_price":37500,"residual_percent":60,"apr_percent":6,"term_months":36,"down_payment":2000,"sales_tax_percent":7} → {"residual_value":24000,"adjusted_capitalized_cost":35500,"monthly_depreciation":319.44,"monthly_finance_charge":148.75,"base_monthly_payment":468.19,"monthly_payment_with_tax":500.97,"total_lease_cost":20034.85,"money_factor_used":0.0025}
GET https://tttkmbb.com/api/v1/calculate/car-lease?msrp=30000&negotiated_price=27000&residual_percent=55&money_factor=0.00125&term_months=36
Machine access
- API:
GET https://tttkmbb.com/api/v1/calculate/car-lease(query parameters) orPOSTwith a JSON body{"inputs": {...}} - Schema: https://tttkmbb.com/api/v1/calculators/car-lease · Markdown: https://tttkmbb.com/finance/car-lease.md · JSON definition: https://tttkmbb.com/finance/car-lease.json
- MCP: server
https://tttkmbb.com/mcp, toolrun_calculator with calculator_id="car-lease" - OpenAPI operationId:
calculate_car_lease_payment - Freshness:
static. Authentication: none. Rate limit: fair use (see rate limits).
Sources
- Investopedia – Money Factor: Definition, Calculation and Example (reference)
- Federal Reserve – Keys to Vehicle Leasing (government)
- Wikipedia – Vehicle leasing (reference)
FAQ
Why multiply the money factor by 2400?
The finance charge is applied to the average of the capitalized cost and the residual, i.e. (cap + residual)/2, each month; folding the ½ and the 12 months into the rate gives APR = MF × 2 × 12 × 100 = MF × 2400.
Is a bigger down payment a good idea on a lease?
It lowers the payment one-for-one over the term but is lost if the car is totaled or stolen early, because gap coverage settles the lessor's balance, not your prepaid amount.
Related calculators
- Car Loan Calculator — Payment and total cost of buying the same car with a loan.
- Loan Payment Calculator — Amortizing-loan payment for comparison.