Lease Payment Calculator
Know your exact payment before you walk into the dealership. Enter the numbers from any lease offer to see a full breakdown — depreciation, finance fee, tax, and total cost.
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How the Lease Payment Formula Works
A lease payment has two components: a depreciation fee and a finance fee. Add them together, apply sales tax, and you have your monthly payment. Here's what each piece means.
Cap Cost (Capitalized Cost)
The selling price of the car — your starting negotiation point. Every $1,000 you negotiate off reduces your monthly payment by about $28 on a 36-month lease. Unlike buying, negotiating on the cap cost (not the monthly payment) is the single highest-leverage move in leasing.
Adjusted Cap Cost = Negotiated Price − Down PaymentResidual Value
The manufacturer's guaranteed future value of the car at lease end, set as a percentage of MSRP. High-residual vehicles (trucks, popular SUVs) cost less to lease because you're paying for less depreciation. This number is non-negotiable and is your biggest lever for finding a good lease — pick high-residual models.
Residual Value = MSRP × Residual %Money Factor
The lease equivalent of an interest rate. Multiply by 2,400 to get the APR equivalent. Dealers may mark up the base money factor set by the manufacturer — always ask for the 'base MF' and compare. A $0.01 difference in money factor on a $35,000 car equals about $35/month.
Finance Fee = (Cap Cost + Residual) × Money FactorTypical Money Factors by Brand (March 2026)
Money factors change monthly. These reflect typical current programs — verify with your dealer or check brand-specific forums for the exact current MF before signing.
| Brand | Typical MF | APR Equiv. |
|---|---|---|
| Toyota | 0.00150 | 3.6% |
| Honda | 0.00125 | 3.0% |
| Mazda | 0.00145 | 3.5% |
| Lexus | 0.00160 | 3.8% |
| Kia | 0.00175 | 4.2% |
| Audi | 0.00189 | 4.5% |
| Mercedes | 0.00200 | 4.8% |
| BMW | 0.00225 | 5.4% |
Frequently Asked Questions
What is a money factor?
A money factor is the lease equivalent of an interest rate, expressed as a small decimal (e.g. 0.00150). To convert it to an approximate APR, multiply by 2,400 — so 0.00150 equals a 3.6% APR. Money factors are set monthly by the manufacturer's finance arm and are not negotiable, though dealers may mark them up. Always ask for the base money factor.
What is residual value?
Residual value is the manufacturer's prediction of what the car will be worth at the end of your lease term, expressed as a percentage of MSRP. A higher residual means lower monthly payments because you're only paying for a smaller portion of the car's depreciation. Residuals are set by the manufacturer and are not negotiable — but they vary significantly by model and term length.
Should I put money down on a lease?
Generally, no. A down payment (cap cost reduction) lowers your monthly payment, but you lose that money forever if the car is totaled or stolen early in the lease — your insurance pays the residual to the leasing company, not your down payment back to you. Instead, consider a multiple security deposit (MSD) program if your manufacturer offers it, which lowers your money factor and is refunded at lease end.
How do I find the base money factor?
The base money factor is published monthly by the manufacturer's finance arm (e.g. Toyota Financial Services, BMW Financial Services). Enthusiast forums like Edmunds' Lease Hacking forum publish current MF and residual data for most brands monthly. You can also ask the dealer directly — they're required to disclose it. Compare the number they quote to the published base to see if they've marked it up.
What's a good money factor?
A money factor below 0.00150 (3.6% APR) is excellent. Between 0.00150 and 0.00200 (3.6%–4.8% APR) is competitive. Above 0.00250 (6.0% APR) is on the expensive side — worth comparing to a traditional auto loan. In the current rate environment, Toyota and Honda tend to offer the most competitive money factors, often below 0.00150 on their core models.