Question 1

How is a monthly lease payment calculated?

Accepted Answer

A lease payment has three parts: depreciation (net cap cost minus residual, divided by term), finance charge (cap cost plus residual, multiplied by the money factor), and sales tax applied to the sum. This calculator uses the same formula leasing companies use.

Question 2

What money factor should I assume?

Accepted Answer

Money factors typically range from 0.00050 (excellent credit, EV incentive) to 0.00250 (average credit). Multiply by 2,400 to convert to APR. If you don't know yours, 0.00125 (≈3% APR) is a reasonable starting estimate.

Question 3

Does this calculator include taxes and fees?

Accepted Answer

It applies your sales tax rate to the monthly payment. It does not add acquisition fees ($595–$995), documentation fees, or registration — add those separately to your due-at-signing estimate.

Lease Payment Calculator

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