Lease Calculation Breakdown - *Thanks*

Hi All!

New to the lease game, and just want to limit the amount of questions / calls to different dealers if I can calculate the lease payment on my own.

Appreciate everyone’s input in advance.

What is ultimately needed from the dealer to calculate the lease payment on my own?

For example:

Dealer Advertised: 2016 Volkswagen Passat 1.8T S for $109/month for 36 months!
*Based on Stock# 60489. MSRP: $18,770. 36 month term. 10,000 miles per year. Residual: $10,511.20. Includes Presidents’ Day Bonus of $1,000. Includes VW Loyalty Bonus of $500. Must qualify for VW Credit Leasing. Excludes tax, MV, Doc fee, Acquisition fee, dealer fees and first months payment. Offer ends 2/29/16. See dealer for details.

From the information above, will I be able to back into the the $109 monthly payment amount?

Given the residual value of $10,511.20, I came up with residual percentage of 55.998% (Is this # correct?)

Am I just missing the money factor? Is money factor public information? If so, where can I find this out? From the above advertisement, is there anyway I can calculate the money factor on my own?

*kindly let me know if I’m missing any other important information for the calculation. Understand there’s a lease calculator, but would rather do the math myself.


They have not given you quite enough information. What they’ve left out is the actual sale price of the car. The way we can tell this is by assuming that the price of the car is the MSRP, less the incentives, less the residual (which you got correct at 56%) then dividing the result by 36 months. In this case the number is more than the monthly payment, so we know they are discounting the car. Since we have two unknowns (the Money factor and the sale price) it can’t be solved.

(1500) promotions
(10,511) residual

6759 Total depreciation
Divided by 36 months

$187.75 per month plus interest and plus tax

Since this number is higher than the advertised payment we know the dealer is discounting the car beyond the promotions. Since the advertised payment is only about $100 per month, we know that the price must be about $3100 less in order for the depreciation component of the payment to be about $100 leaving maybe around $9 for interest. But again since we have two unknowns we can’t say for sure what that money factor is. Just for grins, let’s assume we knew for sure that the sale price of the car included an extra $3100 discount by the dealer. Now we can calculate the MF:

(3100) dealer discount
(1500) promotions

$14,170 Capitalized cost
(10,511) residual

3659 Total depreciation
Divided by 36 months

101.64 total depreciation per month

Now solve for Money factor

$109 total payment
(101.64) depreciation payment

$7.36 interest portion of payment

7.36 divided by (14,170+10511) = .000299

So the the money factor might be .000299 IF the dealer was discounting the car by $3100.

Thank you sooo much for the breakdown and calculations

So we need the sale price of the car – then we can back into the money factor.

**How about the other way around, can we get the money factor and back into the sale price of the lease car?


Like any math problem, one unknown is easily solved.

This leasehackr article says that the mf as of October last year was .00001 (nearly zero)

I think the ad is for a Jetta S, rather than Passat S:

Here’s the program for 2016 Volkswagen Jetta 1.4T S Manual:
Residual: 56% (36/10K)
MF: .00020