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Car Lease Payment Calculator

Estimate your monthly lease costs including depreciation and rent charges.

24 Months 36 Months 48 Months
(Multiply APR by 2400 to get this)

Lease Estimate Summary

Monthly Depreciation: $0.00
Monthly Rent Charge: $0.00
Estimated Monthly Payment: $0.00
*Excludes taxes, registration, and dealer fees.

Understanding Your Car Lease Calculation

Calculating a car lease is more complex than a standard auto loan. While a loan pays off the entire vehicle value plus interest, a lease only pays for the portion of the car's value you "consume" during the term, plus a financing fee known as the money factor.

Key Leasing Terms Explained

  • Gross Capitalized Cost: The negotiated price of the vehicle (MSRP plus any add-ons).
  • Residual Value: The predicted value of the car at the end of the lease term. This is set by the leasing company and expressed as a percentage of the MSRP.
  • Money Factor: The interest rate of the lease. To convert a standard APR to a money factor, divide by 2400. For example, a 3% APR is a 0.00125 money factor.
  • Depreciation Fee: Calculated as (Net Cap Cost – Residual Value) / Lease Term.
  • Rent Charge: Calculated as (Net Cap Cost + Residual Value) × Money Factor. This is effectively the interest you pay on the capital tied up in the car.

Example Lease Scenario

If you lease a car with an MSRP of $40,000, a 60% residual value after 36 months, and a down payment of $2,000:

  • Cap Cost: $38,000 ($40,000 MSRP – $2,000 Down)
  • Residual Value: $24,000 (60% of $40,000)
  • Total Depreciation: $14,000 over 3 years
  • Monthly Depreciation: $388.89
  • Money Factor: 0.0015 (approx. 3.6% APR)
  • Monthly Rent: ($38,000 + $24,000) * 0.0015 = $93.00
  • Total Monthly Base Payment: $481.89
function calculateLeasePayment() { var msrp = parseFloat(document.getElementById('msrp').value); var down = parseFloat(document.getElementById('downPayment').value) || 0; var trade = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseInt(document.getElementById('leaseTerm').value); var mf = parseFloat(document.getElementById('moneyFactor').value); var resPercent = parseFloat(document.getElementById('residualPercent').value); // Basic Validation if (isNaN(msrp) || msrp <= 0) { alert("Please enter a valid Vehicle MSRP."); return; } if (isNaN(mf) || mf <= 0) { alert("Please enter a valid Money Factor (e.g., 0.00125)."); return; } if (isNaN(resPercent) || resPercent 100) { alert("Please enter a valid Residual Percentage (usually between 40-70%)."); return; } // Calculation Logic var capCostReduction = down + trade; var netCapCost = msrp – capCostReduction; var residualValue = msrp * (resPercent / 100); // 1. Monthly Depreciation = (Net Cap Cost – Residual Value) / Term var monthlyDepreciation = (netCapCost – residualValue) / term; // 2. Monthly Rent Charge = (Net Cap Cost + Residual Value) * Money Factor var monthlyRent = (netCapCost + residualValue) * mf; // 3. Total Monthly Payment var totalMonthly = monthlyDepreciation + monthlyRent; // Display Results if (totalMonthly > 0) { document.getElementById('resDepreciation').innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resRent').innerText = "$" + monthlyRent.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalPayment').innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResults').style.display = "block"; // Scroll to result on mobile document.getElementById('leaseResults').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); } else { alert("The calculation resulted in a zero or negative payment. Please check your inputs (specifically the residual value relative to the MSRP)."); } }

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