How it works
Depreciation=(adjusted cost−residual)/months; rent charge=(adjusted cost+residual)×money factor; payment adds entered payment tax.
Input definitions
- Adjusted capitalized cost
- Enter the value in the labeled unit.
- Residual value at lease end
- Enter the value in the labeled unit.
- Lease term in months
- Enter the value in the labeled unit.
- Money factor (not APR)
- Enter the value in the labeled unit.
- Payment tax rate (%)
- Enter the value in the labeled unit.
A worked example
- Adjusted capitalized cost
- 30000
- Residual value at lease end
- 18000
- Lease term in months
- 36
- Money factor (not APR)
- 0.002
- Payment tax rate (%)
- 0
Assumptions & limits
Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated. US-style money-factor model; adjusted cost must already reflect down payment and capitalized fees. Does not handle upfront tax, mileage penalties, acquisition/disposition fees or lease-law disclosures.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Are these investment and borrowing results guaranteed?
No. These are deterministic estimates from the inputs and stated method, not predicted returns or lending offers. Actual fees, tax, timing and contractual terms may differ.
How does the Car lease payment from money factor tool work?
Depreciation=(adjusted cost−residual)/months; rent charge=(adjusted cost+residual)×money factor; payment adds entered payment tax.
What are the assumptions and limits of Car lease payment from money factor?
Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated. US-style money-factor model; adjusted cost must already reflect down payment and capitalized fees. Does not handle upfront tax, mileage penalties, acquisition/disposition fees or lease-law disclosures.