Lease Payment Calculator

Car Lease Payment Calculator Formula

To calculate your monthly lease payment you will need the capitalized cost (C), which is the final negotiated price, minus down payment or trade-ins. Additionally, you will need the MSRP, money factor (mf), the length of the lease in months (m), and the residual value (r) presented as a percentage.

The first step is to calculate the basic monthly lease payment (pmt). This excludes the interest.

pmt = (C - r) / m

Then you need to calculate the monthly interest. (i)

i = (C+r) x mf

Finally you can calculate your total monthly payment by adding the payment and interest.

Payment = pmt + i

Do keep in mind that you will also need to add the monthly taxes you will have to pay. To do this, multiply the monthly payment (pmt) by your local tax rate before adding the interest.

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