# Calculating Residual Value and Money Factor with the Auto Lease Calculator

08 April

## How do I calculate the lease payment?

To calculate the Auto Lease Amount, it is important to consider major factors like the Depreciation fee, sales tax, interest rate, and additional fees(depending on the region.

## The process of calculating Auto Lease

• Consider the MSRP and the sticker price, and multiply them by the residual percentage.
• Now it's the residual Value and, along with the negotiated price of the car, add it to the residual Value to get the capitalised Cost.
• Deduct the down payment and rebates. It is the final adjusted Capitalised Cost.
• Now subtract the residual amount from the adjusted Capitalised Cost as the Depreciation Cost.
• Divide it by the duration/months of the lease, and it becomes the base payment.
• Multiply the money factor by the adjusted capitalised Cost. It is the monthly rent.
• To the base payment, add it to the pre-tax lease payment. Now, this is the total lease amount/Payment.

## What is a Money Factor?

In an Allcalculator.net's auto lease, The interest rate is called the money factor. These are the lease fees or factors of the lease. The money factor is the interest rate is completely dependent on the company selling or leasing the car. The interest rate or money factor for every model of car differs.

## Explain the Residual Value of a Car

The company leasing the Car or Vehicle decides the worth of the vehicle by the end of the lease period. It's an internal factor and is the residual Value of the leased vehicle. If the residual amount is heavier, the lease amount is less.

Most leased cars have a residual value of 45-65% it's for 36 months.

You can calculate by a number close to 60% to find a good resale residual value, and for average monthly payment, something around 50-53%.

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