Lease Payment Breakdown Calculator
Depreciation and rent charge inside a car lease payment.
Enter your values
ⓘ Live results
Results
- Monthly payment (with tax)
- $482.99
- Depreciation charge
- $388.89
- Rent charge (interest)
- $62.5
- Equivalent APR
- 3%
Quick answer
Monthly lease payment is the depreciation charge plus the rent charge, then tax is applied on top.
payment = (cap cost - residual)/term + (cap cost + residual) x money factor
How to use the Lease Payment Breakdown Calculator
- 1Enter the negotiated price, residual value and lease term.
- 2Enter the money factor from the lease offer.
- 3The payment splits into depreciation (the value used up) and rent charge (the finance cost).
Worked example
Using the values the calculator loads with:
Inputs
- Negotiated price (cap cost)32000 $
- Residual value18000 $
- Lease term36 months
- Money factor0.00125
- Sales tax rate7 %
Results
- Monthly payment (with tax)$482.99
- Depreciation charge$388.89
- Rent charge (interest)$62.5
- Equivalent APR3%
Frequently asked questions
How do I convert money factor to APR?
Multiply the money factor by 2400 to get an approximate equivalent interest rate.
Why does residual value matter so much?
A higher residual means less depreciation to pay for, lowering the monthly payment.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.