Lease deal checker
Lease quotes give you a payment and an amount due at signing — rarely the rate. Type in the quote and see the money factor, its APR equivalent and the real cost, so you can judge the deal yourself.
The lease quote
Copy the figures exactly as the dealer wrote them.
Results
Find the rate inside a lease quote
Lease quotes rarely state the money factor. It can be worked out from the payment.
- Enter the MSRP, selling price and down payment.
- Add the residual value and the term.
- Type the monthly payment you were quoted, then press Check.
These numbers don't add up
Rate built into this lease (APR equivalent) Example
—%
Press Check to update
- Money factor
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- Residual (% of MSRP)
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- Discount off MSRP
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- Payment as % of MSRP
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- Total cost of the lease
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- Effective cost per month
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- Finance charge over the term
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- Cost per mile allowed
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| Part | Per month |
|---|---|
| Depreciation fee | |
| Finance fee (the rent charge) | |
| Sales tax | |
| Payment |
What these figures don't show: mileage overage and wear-and-tear charges at lease end, the disposition fee, insurance requirements, and whether the residual and money factor match what the leasing company publishes for this car this month — ask the dealer for both in writing.
How this is calculated
A lease payment is built from two parts, before tax:
depreciation fee = (adjusted cap cost − residual) ÷ term finance fee = (adjusted cap cost + residual) × money factor Knowing the payment, the only unknown is the money factor:
money factor = (payment before tax − depreciation fee) ÷ (adjusted cap cost + residual) Adjusted cap cost = selling price + fees added to the lease − down payment. APR equivalent = money factor × 2400. Total cost = due at signing + remaining payments (or down payment + all payments when due at signing is blank).
Figures for comparison only, worked out from the numbers you enter. They don't rate the offer: the lease contract sets the real terms.
Why the money factor matters
A lease charges interest through the money factor. It is set by the leasing company based on your credit, but the quote you get from a dealer often shows only the payment and the amount due at signing. Two leases with the same payment can hide very different rates if the price, the residual or the down payment differ.
Because the payment formula is public, the money factor can be worked back out of the quote — the same idea as finding the interest rate in a loan offer. Once you have it, its APR equivalent can be compared directly with the rates lenders offer you on a loan.
Worked example
An illustrative quote — these are example inputs, not typical market values: $38,000 MSRP, selling price $36,500, $2,000 down, a $650 acquisition fee added to the lease, residual 58 %, 36 months, $567 a month including 7 % tax.
- Adjusted cap cost: $36,500 + $650 − $2,000 = $35,150.
- Residual: 58 % × $38,000 = $22,040.
- Payment before tax: $567.00 ÷ 1.07 = $529.91.
- Depreciation fee: ($35,150 − residual) ÷ 36 = $364.17.
- What's left is the finance fee: $165.74 a month.
- Money factor: $165.74 ÷ (adjusted cap cost + residual) = 0.00290, an APR equivalent of 6.96 %.
At a 6 % loan-style rate, the same lease would be $542.64 a month: $24.36 less, or $877 over the term. With $2,567 due at signing, the lease costs $22,412 in total — $0.62 per mile allowed at 12,000 miles a year.
The four numbers to compare
- Rate (APR equivalent). Compare it with what a bank or credit union would charge you on a loan. A lease rate well above it is worth asking about.
- Selling price. The capitalized cost can usually be negotiated like a purchase price. The discount off MSRP shows how much it was.
- Residual value. A higher residual means less depreciation to pay for, so a lower payment. It is set by the leasing company, so compare it across quotes for the same car and term.
- Total cost. Everything you pay over the lease, and what that is per mile you're allowed to drive — the fairest way to compare quotes with different down payments.
Ask the dealer for the money factor, the residual and the capitalized cost in writing. If you are weighing a lease against buying, run the same numbers through the lease vs. buy calculator.
Frequently asked questions
How do I know if a lease is a good deal?
There is no single number that settles it, and this tool doesn't rate offers. The figures that tell you most are the rate built into the lease (its APR equivalent), compared with the loan rates you can get; the discount off MSRP on the selling price; the residual value; and the total cost of the lease for the miles you get. Two quotes for the same car can be compared on all four.
What is a money factor, and how do I convert it to an APR?
The money factor is how a lease expresses its interest. Multiply it by 2400 to get the APR equivalent: a money factor of 0.00250 is 6.00 %. The 2400 comes from the finance fee being charged on the cap cost plus the residual, roughly twice the average balance, times 12 months, times 100.
Why does my calculated money factor differ slightly from the dealer's?
Usually because of rounding in the quoted payment, fees added to the lease that you didn't enter, or tax rules in your state (some states tax the down payment or the whole lease up front). Small differences in the fifth decimal are rounding; a larger gap means something in the quote is missing from the numbers.
Is the 1 % rule reliable?
It is a commonly cited rule of thumb that compares the monthly payment with 1 % of the MSRP. It ignores the down payment, the term and the miles included, so two leases can pass or fail it for reasons unrelated to cost. This page shows the figure for reference, alongside the total cost and the rate.
Does a bigger down payment make a lease cheaper?
It lowers the monthly payment and slightly reduces the finance charge, but it doesn't change the money factor. Some lease contracts don't refund the down payment if the car is totaled or stolen early on — check the contract and any gap coverage before putting a large amount down.