Lease Rate Car Calculator
Lease Rate / Money Factor Calculator works out Base monthly payment and Estimated monthly payment from Adjusted capitalized cost, Residual value and Lease term. The default figures on this page give money factor of 0.001259; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
5 steps
- Monthly depreciation = (32000 - 19200) / 36 = 355.56
- Monthly rent charge = 2320 / 36 = 64.44
- Base monthly payment = 355.56 + 64.44 = 420
- Estimated payment = base + entered tax and fees = 420 + 0 = 420
- Money factor = 64.4444 / (32000 + 19200) = 0.001259, i.e. 3.021% APR
Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the Lease Rate / Money Factor Calculator calculates
Estimates the base and total monthly payment on a closed-end vehicle or equipment lease from the adjusted capitalized cost, residual value, term and rent charge, and can solve backwards for the money factor or the capitalized cost a payment supports.
How to use this Lease Rate / Money Factor Calculator
Enter Adjusted capitalized cost, Residual value, Lease term and Monthly taxes and recurring fees. Base monthly payment updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Base monthly payment, Estimated monthly payment and Monthly depreciation.
The method follows 12 CFR 1013.4 (Regulation M) - Content of disclosures, CFPB - What should I know about leasing versus buying a car? and Edmunds - Calculate Your Own Car Lease Payment.
What you can compare
Change one input at a time to see how it affects Base monthly payment, Estimated monthly payment and Monthly depreciation. The inputs you can vary are Adjusted capitalized cost, Residual value, Lease term, Monthly taxes and recurring fees, Known base monthly payment and Amount due at signing.
Understanding Base monthly payment, Estimated monthly payment and Monthly depreciation
This is an estimate built from the figures you entered. Only the lessor's own lease agreement and Regulation M disclosures are binding.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
What is the 1.5% rule when leasing a car?
On the figures this page opens with — adjusted capitalized cost 30,000 and residual value 18,000 — the money factor is 0.001259. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
How much is a lease payment on a $70,000 car?
It needs Adjusted capitalized cost, Residual value, Lease term, Monthly taxes and recurring fees, Known base monthly payment and Amount due at signing. Nothing else is required, and the figures stay in your browser.
What information do I need for the Lease Rate / Money Factor Calculator?
You need Adjusted capitalized cost, Residual value, Lease term, Monthly taxes and recurring fees, Known base monthly payment and Amount due at signing. The page opens with default figures that give money factor of 0.001259, so you can see the scale before entering your own.
What does this Lease Rate / Money Factor Calculator show?
It shows Base monthly payment, Estimated monthly payment, Monthly depreciation, Monthly rent charge, Total rent charge, Total depreciation, Money factor and Equivalent APR, with the working and any warnings for your entries.
Can I check how the Lease Rate / Money Factor Calculator result was calculated?
Yes. The “How this is worked out” section shows the calculation steps, and the sources section identifies the references used for the method.