How to use this tool
Enter adjusted capitalized cost, residual value, lease months and the money factor from your quote.
Add the payment tax rate and other upfront costs. Check which fees are already included in capitalized cost to avoid counting them twice.
Depreciation = (capitalized cost−residual)/months; rent charge = (capitalized cost+residual)×money factor
Worked example
$463.68 · monthly lease estimate
Fixed example using the settings below. Monetary examples use USD; dates and times use their stated reference values. This example stays unchanged when you edit your calculation.
Example inputs
- Adjusted capitalized cost: 30000
- Residual value: 18000
- Lease months: 36
- Money factor: 0.002
- Payment tax rate (%): 8
- Other upfront costs (excluding monthly payments): 1000
Method illustration: 30,000 cost, 18,000 residual, 36 months and .002 factor gives 429.33 before tax.
Assumptions and limits
- Capitalized cost should already reflect cap reductions and financed fees. Assumes tax is applied uniformly to each monthly payment.
- Actual lease taxes, mileage penalties, acquisition/disposition fees and residual guarantees vary.
Check or report a result
Check the units, selected calculation and assumptions first. Compare the fixed example above with your inputs to identify what changed.
Report a calculation issue with the page address, hypothetical inputs, result displayed and result expected. Do not include passwords, bank details or other private information.