Money Factor Calculator

Your details

Manufacturer suggested retail price. The residual value is usually expressed as a percentage of MSRP.
USD
The agreed price before down payment and fees. Lower than MSRP on most deals. This becomes the gross capitalized cost.
USD
The vehicles predicted value at lease end, as a percentage of MSRP. Set by the leasing company, typically 45-65% for a 36-month lease.
%
Duration of the lease. 24, 36, and 48 months are most common.
months
The money factor on the lease offer. Provided by the dealer or manufacturer.
Cash paid upfront to reduce the capitalized cost and therefore the monthly payment.
USD
Bank/lender fee charged to originate the lease. Usually $595-$1,195 depending on the brand. Often rolled into the cap cost.
USD
Most US states tax the monthly lease payment, not the full vehicle price. Enter 0 if your state taxes upfront only.
%
Currency
Monthly payment (with tax)Excellent rate
$574.30

Total monthly lease payment including sales tax

Depreciation charge$448.47
Rent charge (finance charge)$82.06
Monthly tax$43.77
Monthly payment (pre-tax)$530.53
Total lease spend$22,674.69
Effective APR0.03%
Depreciation$448.47
Rent charge$82.06
Sales tax$43.77

Your estimated monthly payment is $574.30, broken down into depreciation and financing cost.

  • Depreciation accounts for 85% of the pre-tax payment ($448.47). This covers the vehicle value you consume over the lease.
  • The rent charge (financing cost) is $82.06, or 15% of the pre-tax total, equivalent to 3.00% APR.
  • Lowering the selling price or increasing the residual value reduces your depreciation charge the most.
  • Negotiating a lower money factor directly reduces the rent charge month by month.

Next stepCompare the total lease spend in this calculator against a purchase scenario using an auto loan calculator to decide which makes financial sense for your situation.

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