Question 1

How is an EV lease payment calculated?

Accepted Answer

A lease payment has two parts. The depreciation fee is the value the car loses during your lease — the capitalized cost minus the residual value, spread over the term. The finance fee is rent on the money, calculated as (cap cost + residual) × the money factor. Add the two, then add sales tax (most states tax the monthly payment) to get your payment.

Question 2

What is a money factor and how does it relate to APR?

Accepted Answer

The money factor is the lease equivalent of an interest rate, written as a small decimal like 0.0025. To convert it to an APR you can compare against a loan, multiply by 2400. So 0.0025 × 2400 = 6.0% APR. A lower money factor means a cheaper lease.

Question 3

Why does a higher residual value lower my payment?

Accepted Answer

The residual is what the car is worth at lease end. You only pay for the value you use up, so a higher residual means less depreciation to cover — and a lower monthly payment. EVs with strong resale value and short terms tend to lease more cheaply for this reason.

Question 4

Should I make a down payment on a lease?

Accepted Answer

A down payment (cap-cost reduction) lowers your monthly payment but is generally not recommended on a lease: if the car is totaled or stolen early, you can lose that money. Many lessees put little or nothing down and accept a slightly higher payment instead. This is an estimate — confirm the dealer's actual money factor and residual.

EV Lease Payment Calculator

Frequently asked questions

Related guides

Related calculators

EV Loan & Payment Calculator

EV vs Gas Cost of Ownership Calculator

EV Tax Credit Calculator

EV Depreciation Calculator

Sources & standards