Car Lease Calculator
From MSRP, selling price, fees, residual and money factor, compute the monthly lease payment (depreciation + finance charge).
Input Data
Results
At a glance:Car lease monthly payment = depreciation + finance charge (+ tax). net capitalised cost = (selling price + dealer fee + registration) - (trade-in + down payment + other reductions). residual = MSRP x residual %. monthly depreciation = (net cap cost - residual) / term. monthly finance = (net cap cost + residual) x money factor (≈ rate / 2400). monthly payment = (depreciation + finance) x (1 + tax). HK has no general sales tax (tax = 0). Leasing pays only for use-period depreciation + interest; payment is usually lower than a loan, but the car is returned at end — no ownership. WARNING: Convert money factor to APR (x 2400); watch mileage/wear charges; HK adds first registration tax and licence. Compare lease vs buy on total cost.
Formula
Net capitalised cost = (selling price + dealer fee + registration) - (trade-in + down payment + other reductions).
Residual = MSRP x residual %; monthly depreciation = (net cap cost - residual) / term.
Monthly finance = (net cap cost + residual) x money factor; monthly payment = (depreciation + finance) x (1 + tax).
How to Use
- Enter MSRP, selling price, dealer fee and registration.
- Enter trade-in, down payment and other reductions.
- Set residual %, money factor and term to see the monthly payment.
FAQ
What is the money factor and how to convert to APR?
The money factor is how leases express the interest rate. Multiply it by 2400 to get the approximate annual rate (APR): 0.0025 x 2400 = 6%. The lower the money factor, the lower the finance cost. Always convert it to APR before comparing with a loan.
Why does a higher residual lower the payment?
Because you only pay for the depreciation (net cap cost - residual) over the lease. A higher residual means less depreciation to cover, so the monthly depreciation — and thus the payment — falls. Residual % is set by the lessor and reflects expected resale value.
Lease vs buy — which is cheaper?
Leasing usually has a lower monthly payment and you drive a newer car with less upfront cash, but you own nothing at the end and face mileage/wear charges. Buying builds equity and you keep the car, but the monthly payment is higher and you bear depreciation and resale risk. Compare on total cost over your planned horizon, including the HK first registration tax and your intended usage. This tool shows the lease side; pair with the car loan and car depreciation calculators.
What hidden costs should I watch in a HK lease?
Beyond the monthly payment: excess-mileage charges, wear-and-tear/return conditions, and admin fees. The car still attracts first registration tax and annual licence. Read the lease's mileage cap and return standards before signing; the low monthly figure can hide these.
Is the money factor the same as APR?
No. The money factor is a small decimal (e.g. 0.0025) that hides the true rate; APR = money factor x 2400. A seemingly tiny money factor can mean a meaningful APR. Always do the conversion so you compare leases and loans on the same footing.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.