Lease Payment Breakdown Calculator
Depreciation and rent charge inside a car lease payment.
Enter your values
Enter the negotiated price (cap cost) in $.
Enter the residual value in $.
Enter the lease term in months.
Enter the money factor you are working with.
Enter the sales tax rate in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Monthly payment (with tax)
- $482.99
- Depreciation charge
- $388.89
- Rent charge (interest)
- $62.5
- Equivalent APR
- 3%
Quick answer
Monthly lease payment is the depreciation charge plus the rent charge, then tax is applied on top.
payment = (cap cost - residual)/term + (cap cost + residual) x money factor
At a glance
| What it does | Depreciation and rent charge inside a car lease payment. |
|---|---|
| Category | Automotive |
| Inputs needed | Negotiated price (cap cost), Residual value, Lease term, Money factor, Sales tax rate |
| Main output | Monthly payment (with tax) |
| Formula | payment = (cap cost - residual)/term + (cap cost + residual) x money factor |
| Cost | Free — no sign-up, no download |
How to use the Lease Payment Breakdown Calculator
- 1Enter the negotiated price, residual value and lease term.
- 2Enter the money factor from the lease offer.
- 3The payment splits into depreciation (the value used up) and rent charge (the finance cost).
Inputs explained
- Negotiated price (cap cost)($)
- Enter the negotiated price (cap cost) in $.
- Residual value($)
- Enter the residual value in $.
- Lease term(months)
- Enter the lease term in months.
- Money factor
- Enter the money factor you are working with.
- Sales tax rate(%)
- Enter the sales tax rate in %.
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.
What do I need to enter into the Lease Payment Breakdown Calculator?
Just 5 values: negotiated price (cap cost), residual value, lease term, money factor, sales tax rate. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Lease Payment Breakdown Calculator work out the answer?
Monthly lease payment is the depreciation charge plus the rent charge, then tax is applied on top. It applies the formula payment = (cap cost - residual)/term + (cap cost + residual) x money factor and shows the working so you can check each step by hand.
Is the Lease Payment Breakdown Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.