Authoritative Data Source & Methodology
Primary reference: CFPB Regulation M — Consumer Leasing (12 CFR Part 1013). Effective dates vary by section; methodology last reviewed Oct 30, 2025. Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
We implement the canonical lease math used across the industry: monthly payment equals the sum of a depreciation fee and a finance (rent) charge, with taxes applied per local rules.
The Formula Explained
\[ \text{Residual} = \begin{cases} \text{ResidualOverride} & \text{if provided}\\ \text{MSRP} \times \dfrac{\text{Residual\%}}{100} & \text{otherwise} \end{cases} \]
\[ \text{DepreciationFee} = \dfrac{\text{AdjCap} - \text{Residual}}{\text{TermMonths}} \]\[ \text{RentCharge} = (\text{AdjCap} + \text{Residual}) \times \text{MoneyFactor} \]\[ \text{PaymentPreTax} = \text{DepreciationFee} + \text{RentCharge} \] Tax treatment:
\[ \text{TaxPerMonth} = \begin{cases} \text{PaymentPreTax} \times \text{TaxRate} & \text{(tax on payment)}\\ 0 & \text{(upfront/no tax)} \end{cases} \] \[ \text{PaymentWithTax} = \text{PaymentPreTax} + \text{TaxPerMonth} \] Upfront tax (if applicable): \(\text{UpfrontTax} = \text{AdjCap} \times \text{TaxRate}\).
APR conversion: \(\text{APR} \approx \text{MoneyFactor} \times 2400 \Rightarrow \text{MF} \approx \dfrac{\text{APR}}{2400}\).
Glossary of Variables
- MSRP: List price used to compute residuals.
- Cap Cost: Negotiated selling price before incentives and fees.
- Adjusted Cap (AdjCap): Cap cost after down/trade/rebates and plus fees.
- Residual: Expected value at lease end (often % of MSRP).
- Money Factor (MF): Finance rate for leases; APR ≈ MF × 2400.
- Depreciation Fee: (AdjCap − Residual) / months.
- Rent Charge: (AdjCap + Residual) × MF.
- Tax Treatment: Whether tax is charged monthly or upfront.
How It Works: A Step-by-Step Example
Suppose MSRP = $40,000, Cap Cost = $36,000, Down = $2,000, Rebates = $500, Trade-in = $0, Acq Fee = $895, Doc/DMV = $400, Term = 36 months, Residual = 58%, MF = 0.0020, tax on payment at 7.5%.
- AdjCap = 36,000 − 2,000 − 500 − 0 + 895 + 400 = 34,795.
- Residual = 40,000 × 0.58 = 23,200.
- DepreciationFee = (34,795 − 23,200) / 36 = 321.53.
- RentCharge = (34,795 + 23,200) × 0.0020 = 115.99.
- PaymentPreTax = 321.53 + 115.99 = 437.52.
- TaxPerMonth = 437.52 × 0.075 = 32.81.
- PaymentWithTax ≈ 470.33. Due at signing ≈ first payment + fees + down − rebates − trade-in.
FAQ
Is a higher down payment always better?
It reduces the adjusted cap and monthly payment but increases cash at risk if the car is totaled early. Many prefer minimal down and higher payments.
What affects residuals the most?
Term and mileage. Longer terms and higher annual mileage reduce residual percentages.
Do acquisition/doc fees roll into the payment?
They can either be paid upfront or capitalized into the adjusted cap. Toggle by entering them here; they are added to AdjCap by default.
What if my region taxes upfront?
Choose “Upfront tax on cap cost” to move sales tax from the monthly payment to due-at-signing.
Can I use APR instead of money factor?
Yes—enter APR and we convert it to MF using APR/2400.
Tool developed by Ugo Candido. Content reviewed by the CalcDomain Editorial Board.
Last accuracy review: